14. The records for ABC Co. show this data for 2020:
• Gross profit on installment sales recorded on the books was P300,000. Gross profit from collections of installment receivables was P220,000.
• Life insurance on officers was P3,800. (ABC Company is the beneficiary.)
• Machinery was acquired in January for P300,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, accelerated depreciation is used and ABC may deduct 14% for 2020.
• Interest received on tax exempt Iowa State bonds was P9,000.
• The estimated warranty liability related to 2020 sales was P19,600. Repair costs under warranties during 2020 were P13,600. The remainder will be incurred in 2021. For tax purposes. Expenses related to warranty is to be deducted when repair costs are actually rendered.
• Pretax financial income is P450,000. The tax rate is 30%.
The total income tax expense for the year 2020 would be?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more
Recent Comments