Problem 12-1 (AICPA Adapted)

Vim Company has estimated that total depreciation

expense
for the year ended December 31, 2017 will amount to
P500,000, and that 2017 year-end bonuses to employees wil
otal P1,200,000.
In the interim income statement for the six months ended
June 30, 2017, what total amount of these expenses should
be reported?
a 1,700,000
b. 1,100,0000
1,450,000
d 850,000
he terms and
conditions of employment with Pauline Company
lde entitlement to share in the staff bonus system, under
include
which 5% of the proit for the year before charging the bonus is
allocated to the bonus pool, provided the annual profit exceeds
P50,000,000.
The profit before accrual of any bonus for the first half of the
estimate of
current year amounts to P40,000,000 and the latest
whole is
the profit beforc accrual of any bonus for the year as a

P60,000,000
bonus expense for the
What anmount should be recognized as

first half of the current year?

a. 1,500,000
b. 3,000,000
C. 2,000,000
d
Problem 12-6 (AICPA Adapted)
On June 30, 2017, Mill Company incurred a P1,000,000 net
loss from disposal of a business segment. Also, on June 30
2017, the entity paid P400,000 for property taxes assessed
for the calendar year 2017.

What total amount should be included in the determination

of the net income for the six-month period ended June 30
2017?

a. 1,400,000
b. 1,200,000
C. 900,000
d. 700,000
Bailan
Company, a
calendar-year entity, had the following
ime be
income before tax provision and effective annual tax
rate for
the first three quarters of the current year:

Income before tax Tax rate

First quarter 6,000,0000 30%

Second quarter 7,000,000 30%
8,000,000o 25%
Third quarter

in the interim income

What is the income tax provision
statement for the third quarter?

a 5,250,000
b. 1,350,000
C. 2,400,000
d 2,000,000
 ma
Sigma Company has a financial reporting year that
2017 and ends on June 30, 2018. The tax begins
July 1, year ends
every December 31.

The entity reports quarterly for interim purposes and the

quarterly income is P1,000,000 for the first quarter, P1,500,000
for the second quarter, P2,500,000 for the third quarter and
P4.000,000 for the fourth quarter.
40% for 2018.
The income tax rate is 30% for 2017 and

for the year ended June

What is the total income tax expense
30, 2018?

a. 3,350,000
b. 2,700,000
C. 3,600,000
d. 3,150,000