Beruflich Dokumente
Kultur Dokumente
INCOME TAXES
PROBLEMS
5-1 a. Nontaxable
b. Nondeductible
c. Nondeductible
d. Temporary difference – Future taxable amount
e. Temporary difference – Future taxable amount
f. Temporary difference – Future deductible amount
g. Temporary difference – Future deductible amount
5-2
Pretax financial income P11,000,000
Add Nondeductible expenses (b + c) 600,000 + 40,000 640,000
Less Nontaxable income (a) (3,000,000)
Financial income subject to tax P 8,640,000
Add Future deductible amounts (f + g) 750,000 + 400,000 1,150,000
Less Future taxable amounts (d + e) 1,500,000 + 1,000,000 (2,500,000)
Taxable income P7,290,000
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Chapter 5 - Income Taxes
(b) Deferred Tax Liability (Asset) at the end of each year is as follows:
2007 300,000 x 35% P
105,000
2008 400,000 x 35% 140,000
2009 300,000 x 35% ( 105,000
)
2010 0 0
2009 2010
Income Tax Expense-Current 420,000 525,000
Income Tax Payable 420,000 525,000
(35% x 1,200,000) (35% x 1,500,000)
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Chapter 5 - Income Taxes
(d)
2007 2008 2009 2010
Income tax expense:
Current P 280,000 P 311,500 P 420,000 P 525,000
Deferred (Benefit) 105,000 35,000 ( 35,000) (105,000)
Total income tax P 385,000 P 346,500 P 385,000 P 420,000
expense
(e)
2007 2008 2009 2010
Income before income P1,100,00 P 990,000 P1,100,00 P1,200,00
tax 0 0 0
Less income tax
expense (see above) 385,000 346,500 385,000 420,000
Net income P 715,000 P 643,500 P 715,000 P 780,000
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Chapter 5 - Income Taxes
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