Question
On January 1, 2020, Midland Company purchased a machine for P1,400,000. This machine has a 5-year useful life, a residual value of P200,000, and is
On January 1, 2020, Midland Company purchased a machine for P1,400,000. This machine has a 5-year useful life, a residual value of P200,000, and is depreciated using the straight-line method for financial statement purposes. For tax purposes, depreciation was P500,000 for 2020 and P400,000 for 2021. The 2021 income before tax and depreciation was P2,000,000, and the tax rate was 30%. The entity made an estimated tax payment of P200,000 during 2021.
What is the total income tax payable on December 31, 2021?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
