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Jasco Company is in the first year of operations. The entity reported pretax income of P4,000,000 and recorded the following items: Premium on life insurance
Jasco Company is in the first year of operations. The entity reported pretax income of P4,000,000 and recorded the following items: Premium on life insurance of key officer 100,000 Depreciation on tax return in excess of book depreciation 120,000 Interest on exempt government bonds 53,000 Warranty expense 40,000 Actual warranty repairs 32,000 Bad debt expense 14,000 Beginning balance in allowance for uncollectible accounts 0 Ending balance in allowance for uncollectible accounts 8,000 Rent received in advance that will be recognized evenly over the next three years 240,000 1. What is the taxable income for the current year? A. 4,047,000 C. 4,103,000 B. 4,083,000 D. 4,183,000
Jasco Company is in the first year of operations. The entity reported pretax income of P4,000,000 and recorded the
following items:
Premium on life insurance of key officer 100,000
Depreciation on tax return in excess of book depreciation 120,000
Interest on exempt government bonds 53,000
Warranty expense 40,000
Actual warranty repairs 32,000
Bad debt expense 14,000
Beginning balance in allowance for uncollectible accounts 0
Ending balance in allowance for uncollectible accounts 8,000
Rent received in advance that will be recognized
evenly over the next three years 240,000
1. What is the taxable income for the current year?
A. 4,047,000 C. 4,103,000
B. 4,083,000 D. 4,183,000
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