Question
Please answer in 30 minutes, will upvote if u answer. Kane Company reported depreciation of P450,000 on its 2020 tax return. However, in its 2020
Please answer in 30 minutes, will upvote if u answer.
Kane Company reported depreciation of P450,000 on its 2020 tax return. However, in its 2020 income statement, Kane reported depreciation of P350,000 as well as P30,000 interest revenue on tax-free bonds. The difference in depreciation is only a temporary difference, and it will reverse equally over the next three years. Kane's enacted income tax rates are as follows:
2020 ............................ | 35% |
2021 ............................ | 30% |
2022 ............................ | 25% |
2023 ............................ | 25% |
What amount should be included in the deferred income tax liability in Kane's December 31, 2020, balance sheet?
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