Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2020, Argentina Company received an advanced payment of P1,000,000, which was subject to tax but not reported in the accounting income until 2021. On

In 2020, Argentina Company received an advanced payment of P1,000,000, which was subject to tax but not reported in the accounting income until 2021.

On 2020, the income tax rate is 30%, income before tax per income statement is P6,000,000 and the income before tax per tax return is P7,000,000.

On 2021, the income tax rate is 30%, income before tax per income statement is P9,000,000 and the income before tax per tax return is P8,000,000.

What are the journal entries to record the income tax and deferred tax for 2020 and 2021? What is the income tax expense in the income statement for 2020 and 2021?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting with International Financial Reporting Standards

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

4th edition

1119504309, 1-119-50340-8, 9781119503408 , 978-1119504306

More Books

Students also viewed these Accounting questions

Question

The number of new ideas that emerge

Answered: 1 week ago

Question

Technology

Answered: 1 week ago