Reference no: EM133109093

Questions -

Q1. The terms and conditions of employment with the Chicken Wings Inc. include entitlement to share in the staff bonus system, under which 5% of the profits for the year before charging the bonus are allocated to the bonus pool, provided the annual profits exceed P50,000,000. The profits (before accrual of any bonus) for the first half of 2021 amount to P40,000,000 and the latest estimate of the profits (before accrual of any bonus) for the year as a whole is P60,000,000. How much should be recognized in profit or loss in respect of the staff bonus for the half year to June 30, 2021, according to IAS 34 Interim financial reporting?

Q2. Chicken Wings Corp. reported revenue of P60,000,000, excluding intersegment sales of P20,000,000, expenses of P57,000,000 and net income of P4,000,000 for the current year. expenses included payroll costs of P25,000,000. The combined assets of all segments at year-end totaled P55,000,000. What is the minimum amount of sales to a major customer?

Q3. The estimated taxable income for Chicken Wings Corporation on January 1, 2021, was P80,000, P100,000, P100,000, and P120,000, respectively, for each of the four quarters of 2021. Chicken Wings estimated annual effective tax rate was 30%. During the second quarter of 2021, the estimated annual effective tax rate was increased to 34%. Given only this information, Chicken Wing's second quarter income tax expense was?