Illustrative accounting entries to record excess MCIT a For taxable year 1998

Illustrative accounting entries to record excess mcit

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Illustrative accounting entries to record excess MCIT (a) For taxable year 1998 when MCIT is greater than the normal income tax liability of the company 1998 (1) Debit: Provision for income tax P25,000 Credit: Income tax payable P25,000 To record income tax liability using the normal income tax rate (2) Debit: Deferred Charges-MCIT P75,000 Credit: Income Tax Payable P75,000 To record excess MCIT (P100,000 - P25,000)
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