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1 January 1, 2020, Cisco Company purchased a machine for P1,400,000. This machine has a 5-year useful life, a residual value of P200,000 and is depreciated using the straight line method for financial statement purposes. For tax purposes, depreciation was P500,000 for 2020, and P400,000 for 2021. Ci...

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1.On January 1, 2020, Cisco Company purchased a machine for P1,400,000. This machine has a 5-year useful life, a residual value of P200,000 and is depreciated using the straight line method for financial statement purposes. For tax purposes, depreciation was P500,000 for 2020, and P400,000 for 2021. Cisco's 2021 income before tax and depreciation was P2,000,000 and its tax rate was 30%. Cisco made estimated tax payment of P200,000 during 2021. What is the income tax payable on December 31, 2021?Required to answer. Single line text. (2/2 Points) 2.On January 1, 2020, Cisco Company purchased a machine for P1,400,000. This machine has a 5-year useful life, a residual value of P200,000 and is depreciated using the straight line method for financial statement purposes. For tax purposes, depreciation was P500,000 for 2020, and P400,000 for 2021. Cisco's 2021 income before tax and depreciation was P2,000,000 and its tax rate was 30%. Cisco made estimated tax payment of P200,000 during 2021. What is the total income tax expense that is reported in the 2021 income statement?Required to answer. Single line text. (2/2 Points) 3.Lessor Company is in its first year of operations. The entity has pretax income of P4,000,000 and provided the following items: Premium on life insurance of key officer: P100,000 Depreciation on tax return in excess of book depreciation: P120,000 Interest on municipal bonds: P53,000 Warranty expense: P40,000 Actual warranty repairs: P33,000 Bad debt expense: P14,000 Beginning balance in allowance for uncollectible accounts: P0 Ending balance in allowance for uncollectible accounts: P8,000 Rent received in advance that will be recognized evenly over the next three years: P240,000 What is the taxable income for the year?Required to answer. Single line text. (2/2 Points) 4.In arriving at its profit before tax for the year ended December 31, 2020, Henry Company has accrued royalties receivable of P200,000 and interest payable of P250,000. Both royalties and interest are dealt with on a cash basis in tax computations. How much is the taxable temporary difference on December 31, 2020?Required to answer. Single line text. (0/2 Points)

Correct answers: 200000

5.In arriving at its profit before tax for the year ended December 31, 2020, Henry Company has accrued royalties receivable of P200,000 and interest payable of P250,000. Both royalties and interest are dealt with on a cash basis in tax computations. How much is the deductible temporary difference on December 31, 2020?Required to answer. Single line text. (0/2 Points) Correct answers: 250000

6.South Company has the following carrying amount of assets and liabilities before adjustments on December 31, 2020: Property: P10,000,000 Plant and equipment: P5,000,000 Inventory: P4,000,000 Trade receivables: P3,000,000 Trade payables: P6,000,000 Cash: P2,000,000 The value for tax purposes for property and for plant and equipment was P7,000,000 and P4,000,000 respectively. On December 31, 2020, the entity has made an adjustment on inventory and made a provision for inventory obsolescence of P2,000,000 which is not allowable for tax purposes. Further, an impairment charge against trade receivables of P1,000,000 has been made. This charge will not be allowed in the current year for tax purposes. The tax rate is 30%. What amount should be recognized as net deferred tax expense for 2020?Required to answer. Single line text. (0/2 Points) Correct answers: 300000

7.In its December 31, 2020 statement of financial position, TNC Company had income tax payable of P130,000 and a deferred tax asset of P200,000. TNC had reported a deferred tax asset of P155,000 on January 1, 2020. No estimated tax payments were made during 2020. In its 2020 income statement, what amount should TNC report as total income tax expenseRequired to answer. Single line text. (0/2 Points) Correct answers: 85000

8.On January 1, 2020, PHX Company estimated a projected benefit obligation of P4,400,000 based on a settlement rate of 10%. Pension benefits paid to retirees totaled P600,000. Service cost for 2020 amounted to P1,480,000. The fair value of plan assets totaled P3,500,000 and P4,000,000 on January 1, 2020 and December 31, 2020 respectively. What is the projected benefit obligation on December 31, 2020?Required to answer. Single line text. (2/2 Points)

9.The following are calculated and presented to you by the actuary of the company relating to its employee benefits: Increase in PBO due to current services: P400,000 Increase in PBO due to plan amendments: P120,000 Increase in PBO due to passage of time: P34,000 Increase in PBO due to change in actuarial assumptions: P36,000 How much of this amount should be charged to profit or loss during the year if these are related to post-employment benefits?Required to answer. Single line text. (2/2 Points) 10.The following are calculated and presented to you by the actuary of the company relating to its employee benefits: Increase in PBO due to current services: P400,000 Increase in PBO due to plan amendments: P120,000 Increase in PBO due to passage of time: P34,000 Increase in PBO due to change in actuarial assumptions: P36,000 How much of this amount should be charged to Other Comprehensive Income during the year if these are related to post-employment benefits?Required to answer. Single line text. (0/2 Points) Correct answers: 36000

11.EKANS Company’s defined benefit plan is shown below Fair Value of the Plan Assets, beginning: P3,600,000 Projected Benefit Obligation, beginning: P4,000,000 Past service cost: P1,000,000 Current service cost: P1,200,000 Contribution: P2,400,000 Benefits paid to retirees during the year: P800,000 Actuarial gains during the period: P40,000 Actual return on plan assets during the period: P240,000 Settlement rate: 10% What is the amount charged against profit or loss (employee benefit expense) for the periodRequired to answer. Single line text. (2/2 Points) 12.EKANS Company’s defined benefit plan is shown below Fair Value of the Plan Assets, beginning: P3,600,000 Projected Benefit Obligation, beginning: P4,000,000 Past service cost: P1,000,000 Current service cost: P1,200,000 Contribution: P2,400,000 Benefits paid to retirees during the year: P800,000 Actuarial gains during the period: P40,000 Actual return on plan assets during the period: P240,000 Settlement rate: 10% What is the amount of net remeasurement loss for the periodRequired to answer. Single line text. (0/2 Points)

Correct answers: 80000

13.EKANS Company’s defined benefit plan is shown below Fair Value of the Plan Assets, beginning: P3,600,000 Projected Benefit Obligation, beginning: P4,000,000 Past service cost: P1,000,000 Current service cost: P1,200,000 Contribution: P2,400,000 Benefits paid to retirees during the year: P800,000 Actuarial gains during the period: P40,000 Actual return on plan assets during the period: P240,000 Settlement rate: 10% What is the ending balance of the plan assets?Required to answer. Single line text. (2/2 Points) 14.EKANS Company’s defined benefit plan is shown below Fair Value of the Plan Assets, beginning: P3,600,000 Projected Benefit Obligation, beginning: P4,000,000 Past service cost: P1,000,000 Current service cost: P1,200,000 Contribution: P2,400,000 Benefits paid to retirees during the year: P800,000 Actuarial gains during the period: P40,000 Actual return on plan assets during the period: P240,000 Settlement rate: 10% What is the amount of accrued benefit cost at the end of the year?Required to answer. Single line text. (0/2 Points) Correct answers: 320000

15.On January 1, 2018, Gigabyte Company granted share options to each of its 300 employees working in the sales department. The share options vest at the end of a three-year period provided that the employees remain in the entity's employ and provided the volume of sales will increase by more than 10% per year. The fair value of each share option on grant date is P30. If the sales increase by more than 10%, each employee will receive 200 share options. If the sales increase by more than 15%, each employee will receive 300 share options. On December 31, 2018, the sales increased by more than 10% but not more than 15%, and no employees have left the entity. On December 31, 2019, sales increased by more than 15% and no employees have left. On December 31, 2020, the sales increased by more than 15% and 50 employees left the entity. On December 31, 2019, how much is the balance of the Share Options Outstanding account?Required to answer. Single line text. (2/2 Points)

16.On January 1, 2018, Gigabyte Company granted share options to each of its 300 employees working in the sales department. The share options vest at the end of a three-year period provided that the employees remain in the entity's employ and provided the volume of sales will increase by more than 10% per year. The fair value of each share option on grant date is P30. If the sales increase by more than 10%, each employee will receive 200 share options. If the sales increase by more than 15%, each employee will receive 300 share options. On December 31, 2018, the sales increased by more than 10% but not more than 15%, and no employees have left the entity. On December 31, 2019, sales increased by more than 15% and no employees have left. On December 31, 2020, the sales increased by more than 15% and 50 employees left the entity. On December 31, 2020, how much is the balance of the Share Options Outstanding account?Required to answer. Single line text. (0/2 Points) Correct answers: 2250000

17.On January 1, 2018, Gigabyte Company granted share options to each of its 300 employees working in the sales department. The share options vest at the end of a three-year period provided that the employees remain in the entity's employ and provided the volume of sales will increase by more than 10% per year. The fair value of each share option on grant date is P30. If the sales increase by more than 10%, each employee will receive 200 share options. If the sales increase by more than 15%, each employee will receive 300 share options. On December 31, 2018, the sales increased by more than 10% but not more than 15%, and no employees have left the entity. On December 31, 2019, sales increased by more than 15% and no employees have left. On December 31, 2020, the sales increased by more than 15% and 50 employees left the entity. What amount should be recognized as compensation expense for 2020?Required to answer. Single line text. (2/2 Points) 18.Balloon Company's grant of 30,000 share appreciation rights enables key employees to receive cash equal to the difference between P20 and the market price of the share on the date each right is exercised. The service period is 2018 through 2020, and the rights are exercisable in 2021. The market price of the share was P25 and P28 on December 31, 2018 and 2019, respectively. What amount should be reported as liability under the share appreciation rights plan in the

December 31, 2019 statement of financial position?Required to answer. Single line text. (0/2 Points) Correct answers: 160000

19.On January 1, 2020, Mars Company purchased an equipment for the cash price of P5,000,000. The supplier can choose how the purchase is to be settled. The choices are 50,000 shares with par value of P50 in one year's time, or a cash payment equal to the market value of 30,000 phantom shares on December 31, 2020. At grant date on January 1, 2020, the market price of each share is P120 and on the date of settlement, on December 31, 2020, the market price of each share is P130. What is the equity component arising from the purchase of equipment with share and cash alternative?Required to answer. Single line text. (2/2 Points) 20.On January 1, 2020, Mars Company purchased an equipment for the cash price of P5,000,000. The supplier can choose how the purchase is to be settled. The choices are 50,000 shares with par value of P50 in one year's time, or a cash payment equal to the market value of 30,000 phantom shares on December 31, 2020. At grant date on January 1, 2020, the market price of each share is P120 and on the date of settlement, on December 31, 2020, the market price of each share is P130. What is the interest expense to be recognized on December 31, 2020 if the supplier has chose the "cash alternative"?Required to answer. Single line text. (2/2 Points)...