Question
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?
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