The following information is available for for MK Corporation for 2019 1

Accounting Oct 30, 2020

The following information is available for for MK Corporation for 2019

1. Excess of tax depreciation over book depreciation, P400, 000. This P400, 000 will reverse equally over the years 2020-2023

2. Deferral for book purposes, P250, 000 of rent received in advance. The rent will be earned in 2020.

3. Pretax financial income of P3, 500,000.

4. Tax rate for all years, 40%

(a) Compute taxable income for 2019

(2) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019.

(c) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming taxable income of P3,250,000

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