April 15, 2021, the Bureau of Internal Revenue is in the process of examining Chala’s tax returns for 2018 and 2019 but has not proposed a deficiency assessment. Management feels an assessment is reasonably possible and if an assessment is made, an unfavorable settlement of up to P5,000,000 is reasonably possible. 1. Chala will accrue (disclose) in relation to the BIR examination an amount of:

April 15, 2021, the Bureau of Internal Revenue is in the process of examining Chala’s tax returns for 2018 and 2019 but has not proposed a deficiency assessment. Management feels an assessment is reasonably possible and if an assessment is made, an unfavorable settlement of up to P5,000,000 is reasonably possible. 1. Chala will accrue (disclose) in relation to the BIR examination an amount of:

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter1: An Introduction To Taxation And Understanding The Federal Tax Law

Section: Chapter Questions

Problem 24DQ

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