11. Ace Company had a pretax accounting income of P5,000,000 for its first year of operations. The following differences are noted between accounting income and taxable income: 1) Nondeductible expenses - 200,000; 2) Nontaxable revenue - 500,000; 3) Gross income on installment sales reported in accounting income but not in taxable income - 1,000,000; 4) Provision for doubtful accounts - 100,000; and 5) Income tax rate - 30%. COMPUTE THE FOLLOWING: 1. Accounting income subject to tax; 2) Taxable income; 3) Total income tax expense; and 4) Current tax expense.
11. Ace Company had a pretax accounting income of P5,000,000 for its first year of operations. The following differences are noted between accounting income and taxable income: 1) Nondeductible expenses - 200,000; 2) Nontaxable revenue - 500,000; 3) Gross income on installment sales reported in accounting income but not in taxable income - 1,000,000; 4) Provision for doubtful accounts - 100,000; and 5) Income tax rate - 30%. COMPUTE THE FOLLOWING: 1. Accounting income subject to tax; 2) Taxable income; 3) Total income tax expense; and 4) Current tax expense.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter16: Multijurisdictional Taxation
Section: Chapter Questions
Problem 5CE
Related questions
Question
![11. Ace Company had a
pretax accounting income of
P5,000,000 for its first year
of operations. The following
differences are noted
between accounting income
and taxable income: 1)
Nondeductible expenses -
200,000; 2) Nontaxable
revenue - 500,000; 3) Gross
income on installment sales
reported in accounting
income but not in taxable
income - 1,000,000; 4)
Provision for doubtful
accounts - 100,000; and 5)
Income tax rate - 30%.
COMPUTE THE FOLLOWING:
1. Accounting income subject
to tax; 2) Taxable income; 3)
Total income tax expense;
and 4) Current tax expense.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77af9b30-e58b-4b23-80c7-4ef94c50b6e2%2Fc56ec030-510b-489e-9815-fdb972a46d94%2Fp07197q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:11. Ace Company had a
pretax accounting income of
P5,000,000 for its first year
of operations. The following
differences are noted
between accounting income
and taxable income: 1)
Nondeductible expenses -
200,000; 2) Nontaxable
revenue - 500,000; 3) Gross
income on installment sales
reported in accounting
income but not in taxable
income - 1,000,000; 4)
Provision for doubtful
accounts - 100,000; and 5)
Income tax rate - 30%.
COMPUTE THE FOLLOWING:
1. Accounting income subject
to tax; 2) Taxable income; 3)
Total income tax expense;
and 4) Current tax expense.
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