The Persistent company, which started operations in 2017, reported 2020 profit before income tax of P2,...
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The Persistent company, which started operations in 2017, reported 2020 profit before income tax of P2, 000, 000. There were no differences between taxable profit and accounting profit. The corporate tax rate is 30%, while the minimum corporate income tax (MCIT) for 2020 was computed to be P700, 000. REQUIRED: Prepare the entry/entries for the income tax assuming: (a) Persistent expects to operate profitably in the succeeding years and its normal corporate income tax shall exceed MCIT. (b) Persistent expects that it until continue to pay the MCIT instead of the corporate income tax at least for the next three years. The Persistent company, which started operations in 2017, reported 2020 profit before income tax of P2, 000, 000. There were no differences between taxable profit and accounting profit. The corporate tax rate is 30%, while the minimum corporate income tax (MCIT) for 2020 was computed to be P700, 000. REQUIRED: Prepare the entry/entries for the income tax assuming: (a) Persistent expects to operate profitably in the succeeding years and its normal corporate income tax shall exceed MCIT. (b) Persistent expects that it until continue to pay the MCIT instead of the corporate income tax at least for the next three years.
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a If Persistent expects to operate profitably in the succeeding years and its normal corporate i... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
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