XYZ’s financial income is P1,800,000 before provision of income tax. The following differences have been noted between taxable and financial income: · Excess of warranty expense over actual warranty expenditures: P27,000 · Premiums paid on life insurance policy on officers where XYZ is the beneficiary, P200,000. · Rent collected in advance for period earned: P35,000 · Penalties paid for late payment of taxes, P15,500 · Excess of tax depreciation over book depreciation: P30,000 · Excess of doubtful accounts expense for financial reporting over the actual write-offs for tax reporting: P12,000 · Impairment of goodwill: P90,000 Current income tax rate is 30%. How much is the taxable income? a. 2,149,500 b. 2,105,000 c. 2,061,000 d. 2,079,000

XYZ’s financial income is P1,800,000 before provision of income tax. The following differences have been noted between taxable and financial income: · Excess of warranty expense over actual warranty expenditures: P27,000 · Premiums paid on life insurance policy on officers where XYZ is the beneficiary, P200,000. · Rent collected in advance for period earned: P35,000 · Penalties paid for late payment of taxes, P15,500 · Excess of tax depreciation over book depreciation: P30,000 · Excess of doubtful accounts expense for financial reporting over the actual write-offs for tax reporting: P12,000 · Impairment of goodwill: P90,000 Current income tax rate is 30%. How much is the taxable income? a. 2,149,500 b. 2,105,000 c. 2,061,000 d. 2,079,000

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 20CE

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