Make journal entries to record the income tax

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Question - In 2020, argentina company received an advance payment of P1,000,000, which was subject to tax but not reported in accounting income until 2021. The income statement and tax return showed the following:

Income before tax per income statement:

2020 - 6,000,000

2021 -9,000,000

Income before tax per tax return:

2020 - 7,000,000

2021 - 8,000,000

Income tax rate

2020 - 30%

2021 - 30%

Required - Make journal entries to record the income tax and deferred tax for 2020 and 2021.

Reference no: EM132999480

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