GONZALES,

AIRA JAIMEE S.
PROBLEM 29 - 5

1. B
2. B
3. B

Multipl
Description of Items Description of Items
y by Tax
Rate

Pretax Income 2,500,000
Permanent differences:
Add: Non-deductible expense -
Less: Non-taxable income -
Income tax
Acctg. profit subject to tax 2,500,000 30% expense 750,000
Temporary differences: -
Less:
Less: TTD (FI>TI) DTL -
Accrued interest income -100,000 30% -30,000
Add:
Add: DDT (FI<TI) DTA -
Current tax
Taxable profit 2,400,000 30% expense 720,000

Current tax expense 720,000

Less: Quarterly income tax payments -

Income tax payable 720,000

PROBLEM 29 - 6

1. A
2. B
3. A

Multipl
Description of Items Description of Items
y by Tax
Rate
GONZALES, AIRA JAIMEE S.

Pretax Income 6,000,000
Permanent differences:
Add: Non-deductible expense -
Less: Non-taxable income -

Income tax 1,800,0
Acctg. profit subject to tax 6,000,000 30% expense 00
Temporary differences: -
Less:
Less: TTD (FI>TI) DTL -
Add: DDT (FI<TI) 30% -
Add:
Advanced rental income 1,000,000 DTA -

Current tax 2,100,0
Taxable profit 7,000,000 30% expense 00

2,100,0
Current tax expense 00
Less: Quarterly income tax payments -

2,100,0
Income tax payable 00

PROBLEM 29 - 7

1. B
2. C
3. C

Multipl
Description of Items Description of Items
y by Tax
Rate

Pretax Income 9,000,000
Permanent differences:
Add: Non-deductible expense -
Less: Non-taxable income
-
Interest income 1,500,000
GONZALES, AIRA JAIMEE S.

Income tax 2,250,0
Acctg. profit subject to tax 7,500,000 30% expense 00
Temporary differences: -
Less:
Less: TTD (FI>TI) DTL -
-
Depreciation per tax… -500,000 30% 150,000
Add: DDT (FI<TI)
Add:
Warranty expense 700,000 30% DTA 210,000

Current tax 2,310,0
Taxable profit 7,700,000 30% expense 00

2,310,0
Current tax expense 00
-
Less: Quarterly income tax payments 500,000

1,810,0
Income tax payable 00

PROBLEM 29 - 8

Multiply
Description of Items Description of Items
by Tax
Rate

20,000,00
Pretax Income 0
Permanent differences:
Add: Non-deductible expense
Less: Non-taxable income

20,000,00 Income tax 6,000,0
Acctg. profit subject to tax 0 30% expense 00
Temporary differences: -
Less:
Less: TTD (FI>TI) DTL -
- -
1,000,000 30% 300,000
GONZALES, AIRA JAIMEE S.
Add:
Add: DDT (FI<TI) DTA -
250,000 30% 75,000

19,250,00 Current tax 5,775,0
Taxable profit 0 30% expense B 00

PROBLEM 29 - 9

Increase in DTL
2018 875,000
-
2017 700,000 175,000
Less: Increase in DTA
2018 0
-
2017 200,000 -200000
Deferred tax expense 375,000

PROBLEM 29 - 10

1. C
2. A
3. C
4. C
5. B
6. B

Multiply
Description of Items Description of Items
by Tax
Rate
Pretax Income 200,000
Permanent differences:
Add: Non-deductible expense
Premium on life insurance 12,000
GONZALES, AIRA JAIMEE S.
Fines, surcharges, penalties 70,000
Less: non-taxable income
Interest income -10,000
Income tax
Acctg. profit subject to tax 272,000 30% expense 81,600
Temporary differences: -
Less:
Less: TTD (FI>TI) DTL -
Excess of acc. dep. -20,000 30% -6,000
Add:
Add: DDT (FI<TI) DTA -
Warranty expense 30,000 30% 9,000
Rent received in
advance 16,000 30% 4,800
Current tax
Taxable profit 298,000 30% expense 89,400

Current tax expense 89,400
Less: Quarterly income tax payments -40,000
Current Income tax payable 49,400

DTL -6,000
DTA 13,800
Deferred tax expense 7,800

Beg. DTD (18k x 30%) 5,400

Increase 13,800
Deferred tax asset 19,200

Beg. TTD (24k x 30%) -7,200

Increase -6,000
Deferred tax liability -13,200
GONZALES, AIRA JAIMEE S.
PROBLEM 30 - 3

FVPA
Beg. 1,300,000
Return on PA 156,000

Contribution 1,400,000 500,000 Benefits paid

80,000 Settlemet

2,276,0
end. 00 C

PROBLEM 30 - 4

PV of DBO

1,200,0
00 beg

benefits paid 500,000 400,000 current service cost

PV of DBO 400,000 600,000 past service cost

144,000 interest cost
actuarial
200,000 loss
A 1,644,000 end.

PROBLEM 30 - 5

FVPA
Beg. 3,600,000
GONZALES, AIRA JAIMEE S.
return on plan
assets 960,000

contributions 240,000 600,000 Benefits paid

settlemen
80,000 t

4,120,0
end. 00

PV of DBO
4,000,0
00 beg
2,200,0
benefits paid 600,000 00 current service cost
PV of DBO 30,000 400,000 interest cost

5,970,000 end.

FVPA, beg. 3,600,000

PVDBO, beg. 4,000,000
Net benefit asset (liability) - Jan. 1 -400,000

FVPA, end. 4,120,000

Less: PBO, end. 5,970,000
-
Net benefit asset (liability) - Dec. 31 1,850,000

PROBLEM 30 - 6

FVPA
Beg. 5,000,000
return on plan
assets 1,000,000

contributions 1,400,000 400,000 Benefits paid

settlemen
80,000 t

6,920,0
end. 00
GONZALES, AIRA JAIMEE S.
PV of DBO
4,000,0
00 beg
2,200,0
benefits paid 400,000 00 current service cost
PV of DBO 30,000 480,000 interest cost

6,250,000 end.

FVPA, beg. 5,000,000

PVDBO, beg. 4,000,000
Net benefit asset (liability) - Jan. 1 1,000,000

FVPA, end. 6,920,000

Less: PBO, end. 6,250,000
Net benefit asset (liability) - Dec. 31 670,000

PROBLEM 30 -7

FVPA
Beg. 1,300,000
return on plan
assets 80,000

contributions 400,000 360,000 Benefits paid


1,420,0
end. 00 A

PV of DBO
1,600,0
00 beg
benefits paid 360,000 800,000 P/C service cost
160,000 interest cost
actuarial
100,000 loss
Benefits paid 2,300,000 end.

Net defined liability 300,000

Multiply by: discount rate 10%
Net interest expense (income) 30,000 B
GONZALES, AIRA JAIMEE S.

Current Service cost 600,000

past Service cost 200,000 800,000

Interest cost on DBO 160,000

Interest Income on Plan Assets -130,000
Interest on the effect of asset ceiling 0 30,000

Actuarial gains losses 100,000

Diff bet. Int income on plan assets and ret. 50,000
change in asset ceiling 0 150,000

Defined benefit cost - P/L

Service Cost 800,000
Net interest 30,000
Defined benefit cost - P/L 830,000 B

Defined benefit cost - OCI 150,000 C

PROBLEM 30 - 8

FVPA
Beg. 2,000,000
return on plan
assets 300,000

contributions 600,000 230,000 Benefits paid


2,670,0
end. 00 A

PV of DBO
1,400,0
00 beg
benefits paid 230,000 950,000 P/C service cost
168,000 interest cost
actuarial
80,000 loss
B 2,368,000 end.
GONZALES, AIRA JAIMEE S.
Net defined asset 600,000
Multiply by: discount rate 12%
Net interest expense (income) 72,000 D

Current Service cost 600,000

past Service cost 350,000 950,000

Interest cost on DBO 168,000

Interest Income on Plan Assets -240,000
Interest on the effect of asset ceiling 0 -72,000

Actuarial gains losses 80,000

Diff bet. Int income on plan assets and ret. -60,000
change in asset ceiling 0 20,000

Defined benefit cost - P/L

Service Cost 950,000
Net interest -72,000
Defined benefit cost - P/L 878,000 A

Defined benefit cost - OCI 20,000 C

PROBLEM 30 - 9

FVPA
Beg. 3,000,000
return on plan
assets 600,000

contributions 340,000 150,000 Benefits paid


3,790,0
end. 00 C

PV of DBO
2,600,0
00 beg
benefits paid 150,000 450,000 P/C service cost
260,000 interest cost
actuarial
80,000 loss
GONZALES, AIRA JAIMEE S.
C 3,240,000 end.

Net defined asset 300,000

Multiply by: discount rate 10%
Net interest expense (income) 30,000 B

Current Service cost 250,000

past Service cost 200,000 450,000

Interest cost on DBO 260,000

Interest Income on Plan Assets -300,000
Interest on the effect of asset ceiling 0 -40,000

Actuarial gains losses 80,000

Diff bet. Int income on plan assets and ret. -40,000
change in asset ceiling 0 40,000

Defined benefit cost - P/L

Service Cost 450,000
Net interest -40,000
Defined benefit cost - P/L 410,000

Defined benefit cost - OCI 40,000