Based on the following information, what was the 2018 taxable income for Jin Co. assuming that its pre-tax accounting income for the year ended December 31, 2018 is P230,000. Temporary difference Future taxable (deductible) amount Installment sales --------------- P192,000 Depreciation-------------------- P60,000 Unearned rent-------------------- (P200,000) a. P282,000 b. P178,000 c. P482,000 d. P222,000

Based on the following information, what was the 2018 taxable income for Jin Co. assuming that its pre-tax accounting income for the year ended December 31, 2018 is P230,000. Temporary difference Future taxable (deductible) amount Installment sales --------------- P192,000 Depreciation-------------------- P60,000 Unearned rent-------------------- (P200,000) a. P282,000 b. P178,000 c. P482,000 d. P222,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 5E

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XYZ Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income € 750,000 Estimated expenses deductible for taxes when paid 1,200,000 Extra depreciation (1,350,000) Taxable income € 600,000 Estimated warranty expense of €800,000 will be deductible in 2019, €300,000 in 2020, and €100,000 in 2021. The use of the depreciable assets will result in taxable amounts of €450,000 in each of the next three years. Instructions (a) Prepare a table of future taxable and deductible amounts. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2018, assuming an income tax rate of 40% for all years.
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XYZ Co. at the end of 2018, its first year of operations, prepared a reconciliation betweenpretax financial income and taxable income as follows:Pretax financial income € 750,000Estimated expenses deductible for taxes when paid 1,200,000Extra depreciation (1,350,000)Taxable income € 600,000Estimated warranty expense of €800,000 will be deductible in 2019, €300,000 in 2020, and€100,000 in 2021. The use of the depreciable assets will result in taxable amounts of €450,000in each of the next three years.Instructions(a) Prepare a table of future taxable and deductible amounts.(b) Prepare the journal entry to record income tax expense, deferred income taxes, andincome taxes payable for 2018, assuming an income tax rate of 40% for all years.
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