9. A reconciliation of Gentry Company's pretax accounting income with its taxable income for 2022, its first year of operations, is as follows: Pretax accounting income - P3,000,000 Excess tax depreciation - (90,000) Taxable income - P2,910,000 The excess tax depreciation will result in equal net taxable amounts in each of the next three years. Enacted tax rates are 40% in 2022, 35% in 2023 and 2024, and 30% in 2025. The total deferred tax liability to be reported on Gentry's statement of financial position at December 31, 2022, is a.P27,000. b.P36,000. c.P30,000. d.P31,500.
9. A reconciliation of Gentry Company's pretax accounting income with its taxable income for 2022, its first year of operations, is as follows: Pretax accounting income - P3,000,000 Excess tax depreciation - (90,000) Taxable income - P2,910,000 The excess tax depreciation will result in equal net taxable amounts in each of the next three years. Enacted tax rates are 40% in 2022, 35% in 2023 and 2024, and 30% in 2025. The total deferred tax liability to be reported on Gentry's statement of financial position at December 31, 2022, is a.P27,000. b.P36,000. c.P30,000. d.P31,500.
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
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9. A reconciliation of Gentry Company's pretax accounting income with its taxable income for 2022, its first year of operations, is as follows:
Pretax accounting income - P3,000,000
Excess tax
Taxable income - P2,910,000
The excess tax depreciation will result in equal net taxable amounts in each of the next three years. Enacted tax rates are 40% in 2022, 35% in 2023 and 2024, and 30% in 2025. The total
a.P27,000.
b.P36,000.
c.P30,000.
d.P31,500.
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