Manila FINANCIAL ACCOUNTING AND REPORTING — VALIX/SIY/VALIX/ESCALA/SANTOS/DELA CRUZ, DEFERRED INCOME TAX tes 1. Am entity reported pretax financial income of P8,000,000 for the current year. The taxable income ‘was P7,000,000 for the current year. The difference is due to accelerated depreciation for income tax purposes. The income tax rate is 30% and the entity made estimated tax payment of P500,000 during the current year. hat amount should be reported as current tax expense for the current year? (712,100,000 everent ase om Tl Tax. Expense 2100 Tox EXP jook 1 2,400,000 +orod ay Ton Pay oT ©. 1,600,000 4. 1,900,000 2. What amount should be reported as income tax payable at year-end? (7,600,000 Aas eek seo ». 2,100,000 ec ©. 2,400,000 4. 1,900,000 ee 2. An entity reported pretax accounting income of P5,000,000 for the current year, The taxable income ‘was P5,500,000. The difference is due to rental received in advance. Rental income is taxable when received, The income tax rate is 30% and the entity made no estimated tax payment in the current year. What amount should be reported as total income tax expense for the current year? (a) 1,650,000 TE icy oO 60 4,500,000, Tr ‘c. 1,800,000 d._ 3,150,000 Nehyet tovedl 3. At the end of the first year of operations, an entity had taxable temporary differences totaling 3,000,000. Of this total, P500,000 relates to current items. The entity also had deductible temporary tuet a differences totaling P1,000,000, P250,000 of which celates to current items. Pretax financial income deduce, for the current year was P20,000,000. The tax rate is 30%. Cocent = veNere Next yea 1, What amount should be reported as current tax expense for current year? a. 5,925,000 6,000,000 6,600,000 “ge 5.400,000 Ve 2, What is the net deferred tax expense or benefit for the current year? a, 900,000 expense b, 300,000 benefit 600,000 expense 600,000 benefit 4. Anentity was organized on January 1, 2020. The entity had pretax accounting income of P5,000,000 and taxable income of P7,000,000 for the current year. The only temporary difference is accrued product warranty cost that is expected to be paid in 2021. The enacted tax rates are 30% for 2020 and 25% for 2021 and thereafter. What amount should be reported as total income tax expense in the income statement for 2020? a. 1,500,000 b. 2,100,000— 5. On December 31, 2020, an entity reported a deferred tax liability of P600,000 and a deferred tax asset of P150,000. On December 31, 2021, the deferred tax liability is P900,000 and the deferred tax asset is zero, What is the deferred tax expense for 2021? “a. 300,000 (x5 450,000 ce 150,000 , 900,000 6. Anentity reported the following information during the first year of operations: Pretax financial income 9,000,000 Nontaxable interest received 1,000,000 Long-term loss accrual in excess of deductible amount 1,500,000 Tax depreciation in excess of financial depreciation 2,000,000 Income tax rate 30% 1. What is the current tax expense? 2,250,000 4 ’. 2,700,000 4S6 ©. 1,800,000 . \ d. 2,550,000 2. What isthe total tax expense? a.) 2,700,000 P® 2,400,000 ¢. 3,130,000 4. 2,550,000 3. What is the deferred tax liability at year-end? va 600,000 b. 456,000 ~ 6 _ 150,000 = | d.900,000 4. What is the deferred tax asset at year-end? a, 600,000 ‘br 450,000 ¢. 750,000 d. 150,000 7. Amentity reported the following assets and liabilities at year-end: Carrying amount Tax base Property 10,000,000 °°""7,000,000, Plant end equipment 5,000,000 “© 4,000,000 Inventory 2,500,000 4,000,000 Accounts receivable 2,500,000° 3,000,000 Liabilities 6,000,000 5,500,000 +) The entity had made’@ provision for inventory obsolescence of P1,500,000. Further, an impairment _1oss.against accounts receivable of 500,000 has been made. The tax rate is 30%. Ser 1, What amount should be reported as deferred tax linbility? 1,200,000 +b. 1,350,000 \ 1,050,000 4. 4,000,000 2. What amount should be reported a deferred tax asset??._ -\S a., 600,000 750,000 ©. 300,000 4. 450,000