Susan company reported taxable income of P8,000,000.00 in the income tax return for the first year...
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Susan company reported taxable income of P8,000,000.00 in the income tax return for the first year of operations. The enacted income tax rate is 30% for the current year and future year. Temporary differences between financial income and taxable income for the year are: Tax depreciation in excess of book depreciation Accrual for product liability claim in excess of actual claim Reported installment sales income in excess of taxable installment sales income What is the deferred tax asset? $800,000.00 1,200,000.00 2,600,000.00 Susan company reported taxable income of P8,000,000.00 in the income tax return for the first year of operations. The enacted income tax rate is 30% for the current year and future year. Temporary differences between financial income and taxable income for the year are: Tax depreciation in excess of book depreciation Accrual for product liability claim in excess of actual claim Reported installment sales income in excess of taxable installment sales income What is the deferred tax asset? $800,000.00 1,200,000.00 2,600,000.00
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To calculate the deferred tax asset we need to determine the temporary differences and apply the ena... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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