PROBLEM 2Complex Company reported the following information relating to income before the 30% tax for accounting purposes:2021 XXXXXXXXXXP 2,000,0002022 XXXXXXXXXX,000,0002023...

PROBLEM 2 Complex Company reported the following information relating to income before the 30% tax for accounting purposes: 2021 P 2,000,000 2022 3,000,000 2023 4,000,000 2024 5,000,000 In 2021, Complex Company recognized doubtful accounts of P100,000. Such accounts were considered worthless or uncollectible in 2022, P40,000 and 2023, P60,000. Analysis of the tax and book records disclosed P120,000 in unearned rent income on December 31, 2021 that has been recognized as taxable income in 2021 when the cash was received. Also, on December 31, 2021, estimated warranty cost of P300,000 had been recognized as expense on the books in 2021 when the product sales were made but is not deductible for tax purposes until paid. The unearned rent income on December 31, 2021 is realized and the actual warranty payments were made as follows: Rent income per booksActual warrant payments 2022 P 40,000 P 20,000 2023 40,000 80,000 2024 40,000 200,000 a. The current tax expense of Complex Company for 2021 is: b.The net deferred tax expense or benefit of Complex for 2022 is:

Jun 11, 2022
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