Question
Tala Corp. reported net income for the current year 2019 at P10,000,000 before taxes. Included in the determination of the said net income were: Permanent
Tala Corp. reported net income for the current year 2019 at P10,000,000 before taxes. Included in the determination of the said net income were:
Permanent differences:
Non-deductible expenses P100,000
Non-taxable income 500,000
Temporary differences:
Accrued warranty expenses 250,000
Rental payments made in advance 400,000
Advance collections from customers 500,000
Provision for probable losses 900,000
Income tax rate is 40% and is not expected to change in the future.
1.How much is the current tax expense?
2.How much is the total tax expense?
3.What is the total deferred tax asset to be presented in the 2019
4.What is the total deferred tax liability to be presented in the 2019 Statement of Financial position?
5.Assuming that the expected income tax rate for the following year is 35%, what is the total tax expense?
6.Assuming that the expected income tax rate for the following year is 35%, what is the total tax asset?
7.Assuming that the expected income tax rate for the following year is 35%, what is the total tax liability?
*please also explain how each answers come up, thank you!
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