* Problem 16-31 (IFRS) Lakeshore Company reported the following selected information for the current year: 9,700,000 300,000 Accounting income before tax Interest income on tax-exempt municipal bonds...


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* Problem 16-31 (IFRS)<br>Lakeshore Company reported the following selected<br>information for the current year:<br>9,700,000<br>300,000<br>Accounting income before tax<br>Interest income on tax-exempt municipal bonds<br>Depreciation claimed on the tax return in excess of<br>financial depreciation<br>Carrying amount of depreciable asset in excess of tax basis 800,000<br>Warranty expense reported on the income statement<br>Actual warranty expenditures<br>Income tax rate<br>500,000<br>200,000<br>50,000<br>30%<br>At the beginning of current year, the entity reported<br>deferred tax asset at zero and deferred tax liability at P90,000.<br>1. What is the current tax expense for the current year?<br>a. 2,715,000<br>6. 2,625,000<br>c. 2,655,000<br>d. 2,745,000<br>2. What is the total tax expense for the current year?<br>а, 2,820,000<br>b. 2,730,000<br>c. 2,700,000<br>d. 2,550,000<br>3. What is the deferred tax liability at year-end?<br>а. 240,000<br>b. 150,000<br>c. 210,000<br>d. 120,000<br>4. What is the deferred tax asset at year-end?<br>a. 60,000<br>b. 45,000<br>с. 15,000<br>d. 75,000<br>571<br>

Extracted text: * Problem 16-31 (IFRS) Lakeshore Company reported the following selected information for the current year: 9,700,000 300,000 Accounting income before tax Interest income on tax-exempt municipal bonds Depreciation claimed on the tax return in excess of financial depreciation Carrying amount of depreciable asset in excess of tax basis 800,000 Warranty expense reported on the income statement Actual warranty expenditures Income tax rate 500,000 200,000 50,000 30% At the beginning of current year, the entity reported deferred tax asset at zero and deferred tax liability at P90,000. 1. What is the current tax expense for the current year? a. 2,715,000 6. 2,625,000 c. 2,655,000 d. 2,745,000 2. What is the total tax expense for the current year? а, 2,820,000 b. 2,730,000 c. 2,700,000 d. 2,550,000 3. What is the deferred tax liability at year-end? а. 240,000 b. 150,000 c. 210,000 d. 120,000 4. What is the deferred tax asset at year-end? a. 60,000 b. 45,000 с. 15,000 d. 75,000 571

Jun 09, 2022
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