Weiss, Inc. began operations in 2021. Included in its 2021 financial statements were bad debts expense...

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Weiss, Inc. began operations in 2021. Included in its 2021 financial statements were bad debts expense of P140,000 and profit from installment sales of P260,000. For tax purposes, the bad debts will be deducted and the profit from installment sales will be recognized in 2022. The enacted tax rates are 30% in 2021 and 34% in 2022. In its 2021, profit or loss what amount should Weiss report as deferred income tax expense? Weiss, Inc. began operations in 2021. Included in its 2021 financial statements were bad debts expense of P140,000 and profit from installment sales of P260,000. For tax purposes, the bad debts will be deducted and the profit from installment sales will be recognized in 2022. The enacted tax rates are 30% in 2021 and 34% in 2022. In its 2021, profit or loss what amount should Weiss report as deferred income tax expense?

Answer rating: 100% (QA)

To calculate the deferred income tax expense for 2021 we need to consider the temporary differences ... View the full answer