Accounting For Essay

4456 WordsDec 2, 201118 Pages
income tax Accounting for Income Tax 1. Hilton Company reported pretax financial income of P6,200,000 for the calendar year 2010. Included in the income section of the income statement was P200,000 of interest revenue from government bonds held by the entity. The income statement also included depreciation expense of P500,000 for a machine that cost P3,000,000. The income tax return reported P600,000 as depreciation on the machine. The enacted tax rate is 30% for 2010 and future years. What is the current tax expense for 2010? a. 1,860,000 b. 1,800,000 c. 1,770,000 d. 1,830,000 2. Tantrum Company began operations on January 1,2010. AT the end of the first year of operations, Tantrum reported P6,000,000 income before income tax in its income statement but only P5,100,00 taxable income in its tax return. Analysis of the P900,000 difference revealed that P500,000 was a permanent difference and P400,000 was a temporary tax liability difference related to a current asset. The enacted tax rate for 2010 and future years is 30%. What is the total income tax expense to be reported in the 2010 income statement? a. 1,800,000 b. 1,530,000 c. 1,650,000 d. 1,950,000 3. Aris Company computed a pretax accounting income of P5,000,000 for its first year of operations ended December 31,2010. In preparing the income tax return for 2010, the following differences are noted between accounting income and taxable income. Nondeductible Expenses 200,000 Nontaxable Revenue 500,000 Gross Income on Installment Sales Reported in Accounting Income but not In Taxable Income 1,000,000 Provision for Doubtful Accounts 100,000 Income Tax Rate 30% What is the current tax expense? a. 1,140,000 b. 1,410,000 c. 1,500,000 d. 1,110,000 4. Viking

More about Accounting For Essay

Open Document