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Prepare entries for income tax

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Reference no: EM133041069

Question - The following information relates to Bless Company, a calendar year corporation.

i. Deferred tax liability at January 1, 2020, P150,000.

ii. Deferred tax asset at January 1, 2020, P90,000.

iii. Taxable profit for the year 2020, P3,000,000.

iv. Pre-tax accounting profit for the year ended December 31, 2020, P2,800,000.

v. Cumulative taxable temporary difference at December 31, 2020, P400,000.

vi. Cumulative deductible temporary difference at December 31, 2020, P200, 000.

REQUIRED -

a. Determine the income tax payable at December 31, 2020, assuming previous payments of P500,000 were made in 2020 relating to 2020 income tax.

b. Prepare entries for income tax, both current and deferred Portion. Previous payments aggregating PP500,000 were Charged to Income Tax Expense.

c. Compute for the company's total income tax expense and profit (after income tax) for the year 2020.

Reference no: EM133041069

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