Lanzones Corp. began operations at the beginning of the current year. At the end of the first year of operations, the entity reported P6,000,000 income before income tax in the income statement but only P5,100,000 taxable income in the tax return. Analysis of the P900,000 difference revealed that P500,000 was a permanent difference and P400,000 was a temporary tax liability difference related to a current asset. The tax rate for the current year and future years is 30%. Required: 1. What is the accounting or financial income subject to tax? 2. The total income tax expense for the current year is? 3. How much is the pretax financial income
Lanzones Corp. began operations at the beginning of the current year. At the end of the first year of operations, the entity reported P6,000,000 income before income tax in the income statement but only P5,100,000 taxable income in the tax return. Analysis of the P900,000 difference revealed that P500,000 was a permanent difference and P400,000 was a temporary tax liability difference related to a current asset. The tax rate for the current year and future years is 30%. Required: 1. What is the accounting or financial income subject to tax? 2. The total income tax expense for the current year is? 3. How much is the pretax financial income
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
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Question
Lanzones Corp. began operations at the beginning of the current year. At the end of the first year of operations, the entity reported P6,000,000 income before income tax in the income statement but only P5,100,000 taxable income in the tax return. Analysis of the P900,000 difference revealed that P500,000 was a permanent difference and P400,000 was a temporary tax liability difference related to a current asset. The tax rate for the current year and future years is 30%.
Required:
1. What is the accounting or financial income subject to tax?
2. The total income tax expense for the current year is?
3. How much is the pretax financial income?
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