11.

Juan Company is in the first year of operations and reported pretax accounting income of
4,000,000. The entity provided the following information for the first year: (tax rate 30%)
Premium of life insurance of key offer 100,000
Depreciation on tax return in excess of book depreciation 200,000
Tax exempt interest income 50,000
Warranty expense 40,000
Actual warranty repair 30,000
Doubtful account expense 60,000
Write-off of uncollectable accounts 20,000
Rent receive in advance 300,000

What is the taxable income for the first year?

a. 4,000,000
b. 4,100,000
c. 4,200,000
d. 4,500,000

12. EMVS Company reported in the statement of comprehensive income for the year ended,
December 31, 2020 a pretax of income of 1,000,000.
Tax Return Accounting Period
Rent income 70,000 120,000
Depreciation 280,000 220,000
Premiums on officer’s life insurance 90,000
Income tax rate 30%

What is the current provision for income tax for 2020?

a. 294 000 c. 327,000
b. 300,000 d. 360,000