answer this please typewritten please follow all instructions topic: income tax subject : accounting

mew...\" .ili We LidS'ilEII 2:17 This document contains ink, shapes v |||- Your colleagues in the audit department took the trial balance amounts and first computed the current state income taxes payabie as Php 125, and the income tax payabie as Php 500. Complete the construction of the trial balance. IV- Determine Mango Tree's total tax provision for the year (i.e., the \"tax accrual"). Take the amounts that you derived in the trial balance, and from the tax payables given in item I\" above. to make this computation. Hint: Compute the provision rst. As adjusted by the tax department, net temporary differences are Php 392. Your instructor can provide details of this accurate computation if you'd like. Using the tax provision amount, compute the corporation's effective tax rate to be reported to management. V- Summarize Edgewood's changes in its Deferred Tax Assets/Liabilities for the year, and prepare thejournal entry to record these changes to the net deferred tax balance. Information from Mango Tree Files (all Php - K) 1. Mango Tree recorded an expense of Php 1,000 for its defined benefit retirement plans, but only Php 7'50 of this amount qualified for ED titan .illl Ge) 9 L: 1.3% [Is 2216 This document contains ink, shapes The Mango Tree Corporation is organized in Rosario Cavite, and it operates within its close proximity in Tanza and General Trias Cavite. It provides artistic services on a contract basis, e.g., doing set design for lms, plays, and processing digital information for film productions. Mango Tree follows generally accepted accounting principles (GAAP), and it is required to file tax returns in a calendar year. Mango Tree holds no net operating loss (NOL) carryovers. Corporate policy is not to incur income tax underpayment penalties. Mango Tree's CFO has asked for your assistance in generating information needed for the corporation's financial statements. The financial accounting records of Mango Tree for the current year produce the following abbreviated trial balance. Other information is available from last year's tax le and supporting records. Follow all the public company disclosure rules without regard to materiality or significance. For items | and II. use the format found in the partiaiiy completed Trial Balance (Summary) for Mango Tree. For items IV and V. use the format found in the Tax Provision worksheet, filling in the shaded cells only. Both worksheets are attached. l- Using the information provided, compute book income before taxes for Mango Tree. II- Identify and measure Mango Tree's book- tax differences. Classify each of the booktax differences as temporary or permanent. |||- Your colleagues in the audit department took the trial balance amounts and first 42% 2:17 BMGt28_Case Study . . . Information from Mango Tree Files (all Php - K) 1. Mango Tree recorded an expense of Php 1,000 for its defined benefit retirement plans, but only Php 750 of this amount qualified for an income tax deduction in the current year. 2. The interest income was received from bonds issued by Globe Telecom (Php 30). 3. The Deferred Revenue account was established because Mango Tree received full payment last year on a contract for services, one-half of which Mango Tree performed this year, and one-half of which it will perform next year. 4. Mango Tree holds life insurance policies on its five officers. Activity concerning these policies this year included the following. Proceeds collected, death of CIO Php 1,000 Premium paid, all policies Php 650 Increase in cash value, all policies Php 125 5. Mango Tree sold some of its investment land, held as a capital asset per a previous audit settlement, at a Php 15 loss. 6. Mango Tree's tax department reported a Php 44 total of documented expenses for meals. 7. Mango Tree truck drivers were responsible for Php 10 in speeding tickets, all of which the company paid during the current year. 8. Mango Tree accrued a current-year tax expense of Php 625.00. Mango Tree Corporation Balance Sheet Summary 2023 Item Item Beginning of Year End of Year Balance Notes Number Balance Book Bad Debt 110 125 Allowance There were no Book net asset cost vs acquisitions or -115 -138 Tax basis dispositions during the year 3 Cumulative adjustment 40 75 Assets42% 2:17 Assets Cash Php 1,500 Account Receivable 1,100 Inventories 1,400 Property. plant, equipment, 2,000 net of depriciation Invetment 2,550 land Notes receivable, 210 long term Deferred tax 40 assets a All other 2,750 assets Total Php 11,550 Trial Balance (Summary) (Php 1000) Current Year 2022 Difference Total Book Tax Temporary Permanent Revenues, net of expenses with no book-tax differences (including 10,000 10,000 10,000 interest expense and others Cost of Goods Sold -7,500 -7,500 -7,500 Fines Paid to Governments 10 -10 0 10 Bad Debt Expense 15 -15 0 15 Interest Income 42 Thank you! Prepared by: Maggie Mae Macaranas