COLTRAGE CORP. was organized on January 1, 2014. The entity had pretax accounting income of P500,000 and taxable income of P800,000 for the year ended December 31, 2014. The only temporary difference is accrued product warranty costs that are expected to be paid as follows: 2015....... 100,000 2016..... 50,000 2017... 50,000 2018...... 100,000 The entity has never had any net operating losses and does not expect any in the future. The enacted income tax rates are 35% for 2014, 30% for 2015 through 2017, and 25% for 2018. On December 31, 2014, what amount should be reported as deferred tax asset?

COLTRAGE CORP. was organized on January 1, 2014. The entity had pretax accounting income of P500,000 and taxable income of P800,000 for the year ended December 31, 2014. The only temporary difference is accrued product warranty costs that are expected to be paid as follows: 2015....... 100,000 2016..... 50,000 2017... 50,000 2018...... 100,000 The entity has never had any net operating losses and does not expect any in the future. The enacted income tax rates are 35% for 2014, 30% for 2015 through 2017, and 25% for 2018. On December 31, 2014, what amount should be reported as deferred tax asset?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter12: Tax Credits And Payments

Section: Chapter Questions

Problem 23P

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