The books of Chicharon Bulaklak Company for the year ended December 31, 2020 showed pretax income of P720,000. In computing the taxable income for income tax purposes, the following temporary differences were taken into account. Depreciation deducted for tax purposes in excess of depreciation recorded in the books- P32,000 Income from installment sales reportable for tax purposes in excess of income recognized in the books- P24,000 What amount should Chicharon Bulaklak Company record as current income tax liability at December 31, 2020 assuming a corporate income tax rate of 30%.
The books of Chicharon Bulaklak Company for the year ended December 31, 2020 showed pretax income of P720,000. In computing the taxable income for income tax purposes, the following temporary differences were taken into account. Depreciation deducted for tax purposes in excess of depreciation recorded in the books- P32,000 Income from installment sales reportable for tax purposes in excess of income recognized in the books- P24,000 What amount should Chicharon Bulaklak Company record as current income tax liability at December 31, 2020 assuming a corporate income tax rate of 30%.
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 22CE
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The books of Chicharon Bulaklak Company for the year ended December 31, 2020 showed pretax income of P720,000. In computing the taxable income for income tax purposes, the following temporary differences were taken into account.
Depreciation deducted for tax purposes in excess of depreciation recorded in the books- P32,000
Income from installment sales reportable for tax purposes in excess of income recognized in the books- P24,000
What amount should Chicharon Bulaklak Company record as current income tax liability at December 31, 2020 assuming a corporate income tax rate of 30%.
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