Uno Company reported income before tax for the first six months ended June 30, 2021 at P5,000,000. However, the business is seasonal and income before tax for the last six months ended December 31, 2021 is almost certain to be P9,000,000. Income before tax equals taxable income for this entity. The entity operates in a country where income tax on entities is at a rate of 30% if annual income is below P11,000,000 and a tax rate of 35% where annual income exceeds P11,000,000. These tax rates apply to the entire income for the year. What amount should be reported as income tax expense in the interim financial statements for the half year ended June 30, 2021?

Uno Company reported income before tax for the first six months ended June 30, 2021 at P5,000,000. However, the business is seasonal and income before tax for the last six months ended December 31, 2021 is almost certain to be P9,000,000. Income before tax equals taxable income for this entity. The entity operates in a country where income tax on entities is at a rate of 30% if annual income is below P11,000,000 and a tax rate of 35% where annual income exceeds P11,000,000. These tax rates apply to the entire income for the year. What amount should be reported as income tax expense in the interim financial statements for the half year ended June 30, 2021?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 51P

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