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Problem 1: What amount of income tax expense should Abc Company report at the end of 2019? Abc company made the following journal entry in late 2019 for rent on property it leases to songsong corp.
Cash 60000
unearned rent 60000
the payment represents rent for the years 2020 and 2021, the period covered by the lease. Abc company is cash basis taxpayer. Abc has income tax payable of 92000 at the end of 2019 and its tax rate is 35%.
a. P53,000
b. P71,000
c. P81,500
d. P113,000
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