EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax during the year. To compute the provision for income tax, the following data are provided: • Tax depreciation in excess of financial statement amount - P 36,500 • Interest income received - P 80,500 • Rent received in advance - P 175,000 • Dividend income - P 91,700 • Estimated tax payment in the current year - P 65,000 • Provision for bad debts not yet recognized for tax purposes on the current year - P 48,300 • Tax penalties due to late filing on tax return - P 20,000 Corporate tax rate - 30% Required: 14. What is the total income tax expense for the year? 15. What is the net income after tax?
EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax during the year. To compute the provision for income tax, the following data are provided: • Tax depreciation in excess of financial statement amount - P 36,500 • Interest income received - P 80,500 • Rent received in advance - P 175,000 • Dividend income - P 91,700 • Estimated tax payment in the current year - P 65,000 • Provision for bad debts not yet recognized for tax purposes on the current year - P 48,300 • Tax penalties due to late filing on tax return - P 20,000 Corporate tax rate - 30% Required: 14. What is the total income tax expense for the year? 15. What is the net income after tax?
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 18E
Related questions
Question
Ive been rejected many times. Please answer in good accounting form thankyou.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning