Present the income tax expense in the income statement

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Reference no: EM132519528

Reported pretax accounting income included P500,000 estimated litigation loss which will become tax deductible when settled next year. The income tax rate is 30%.

The income statement and tax return showed the following:

                                2019                   2020

Accounting income       4,500,000        7,500,000

Taxable income           5,000,000           7,000,000

Required:

Question 1. Prepare journal entries relating to income tax expense for 2019 and 2020.

Question 2. Compute the total income tax expense for 2019 and 2020.

Question 3. Present the income tax expense in the income statement for 2019.

Reference no: EM132519528

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