Solution-How much should igado company report as deferred

How much should igado company report as deferred tax asset

Reference no: EM132846383

Question - The following information is taken from Igado Company's 2020 financial records:

Pretax accounting income- P1,500,000

Accrued warranty in excess of actual warranty expenditures- P24,500

Excess tax depreciation- P45,000

Taxable income- P1,479,500

The temporary differences were created entirely in 2020. The future deductible amount is expected to reverse in 2021 and the future taxable amount will reverse in equal amounts in the next three years. Tax rates are: 30% in 2020; 32% in 2021; 34% in 2022 and 35% in 2023.

How much should Igado Company report as deferred tax asset and deferred tax liability, respectively, at December 31, 2020?

Reference no: EM132846383

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How much should igado company report as deferred tax asset

Reference no: EM132846383

Reference no: EM132846383

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