Leer Corporation’s pretax income in 20x7 was P100,000. The temporary differences between amounts reported in the financial statements and the tax return are as follows; Depreciation in the financial statements was P8,000 more than the tax depreciation. The equity method of accounting resulting in financial statement income of P35,000. A P25,000 dividend was received during the year, which is eligible for the 80% dividends received deduction. Leer’s effective income tax rate was 30% in 20x7. In its 20x7 income statement, Leer should report a current provision for income taxes of __________.
Leer Corporation’s pretax income in 20x7 was P100,000. The temporary differences between amounts reported in the financial statements and the tax return are as follows; Depreciation in the financial statements was P8,000 more than the tax depreciation. The equity method of accounting resulting in financial statement income of P35,000. A P25,000 dividend was received during the year, which is eligible for the 80% dividends received deduction. Leer’s effective income tax rate was 30% in 20x7. In its 20x7 income statement, Leer should report a current provision for income taxes of __________.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 1BCRQ
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3. Leer Corporation’s pretax income in 20x7 was P100,000. The temporary differences between amounts reported in the financial statements and the tax return are as follows;
Depreciation in the financial statements was P8,000 more than the tax depreciation.
The equity method of accounting resulting in financial statement income of P35,000. A P25,000 dividend was received during the year, which is eligible for the 80% dividends received deduction.
Leer’s effective income tax rate was 30% in 20x7. In its 20x7 income statement, Leer should report a current provision for income taxes of __________.
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