Solution-How much is the income tax expense for the year

How much is the income tax expense for the year

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Reference no: EM132600960

Hyatt Company reported a pretax accounting income of P7,900,000 for the year ended December 31, 2020. Temporary differences have been identi?ed as folows:

Tax deprecatlon in excess of accounting depreciation= P1,000,000

Litigation loss accrued for financial accounting purposes but will be deducted for

tax purposes in the distant future=P400,000

Warranty cost expensed for ?nancial accounting purposes exceeded the amount currently deductible for tax purposes by P300,000

The warranty liability is classified as a current liability in the entity's statement of ?nancial position. The income tax rate is 30% There are no temporary differences at the beginning of the current year.

Question a. How much is the taxable income for 2020?

Question b. How much is the income tax expense for the year?

Reference no: EM132600960

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How much is the income tax expense for the year

Reference no: EM132600960

Reference no: EM132600960

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