INCOME TAX ACCOUNTING - EFFECTS

OF TEMPORARY DIFFERENCES
(BSA22M1_INTACC 2)
An asynchronous activity in INTACC 2 (May 27, 2021) INSTRUCTIONS: 1) Submit early to avoid
non-acceptance. 2) Ignore peso sign. 3) Wrong spelling is wrong.
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Points:
0/25
1.The estimated warranty liability of an entity is P350,000. What is the tax base for tax
purposes?Single line text.
(0/5 Points)

Correct answers: zero,,0,nothing
2.A receivable is credited for P50,000 because the entity considered it to be
uncollectible. In filing the tax return, what effect will this write-off be to the income tax
due from the entity? Put "Increase" or "Decrease" to your answer. Example: Increase
1"Single line text.
(0/5 Points)

Correct answers: Decrease 4,500

3.Company B acquired a loan from a bank payable in quarterly installments. Assume
the payment for 3rd quarter is P500,000, what effect will this payment have to the
bank when filing its return for the quarter? Only one word is an answer.Single line text.
(0/3 Points)

Correct answers: nothing,zero,none
4.Seals Company's annual financial income and taxable income is P400,000 and
P700,000 respectively. Assume a tax rate of 30%, what is the income tax payable of
Seals?Single line text.
(0/3 Points)

Correct answers: 120,000
5.Assume in number 4, Seals has a prepaid tax for the 1st to the 3rd quarter of
P135,000. Compute for the current tax expense.Single line text.
(0/3 Points)

Correct answers: 210,000
6.Income tax payable is always lower when an entity has prepaid tax during the
year.Single choice.
(0/3 Points)
Yes
No
It depends
Never will it happen
Your answer to question 6 is wrong. Correct answers: It depends
7.Company C during 20x1 has a deferred tax income and in 20x2 experienced a
deferred tax expense. What is deferred tax liability compared to deferred tax asset in
20x1 as to its changes ?Single line text.
(0/3 Points)

Correct answers: lower,less,low,lesser
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