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  3. (6). assuming patio co. has a positive taxable inc

(6). Assuming Patio Co. has a positive taxable income, what statement correctly explains the current...

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(6). Assuming Patio Co. has a positive taxable income, what statement correctly explains the current income tax presentation on the Statement of Financial Position at December 31, 2020? A. Patio Co. would show a current asset called income tax receivable, B. Patio Co. would show a non-current liability called income tax payable. C. Patio Co. would show a current liability called income tax payable. D. Patio Co. would show both a current and non-current liability called income tax payable. #6 Answer: (7). Which of the following illustrates the journal entry to record the current income taxes on the discontinued loss of $50,000 (2 marks)? Account Title Debit Credit A. Current tax expense - discontinued operations 6,250 Current income tax payable 6,250 6,250 B. Current income tax payable Current tax expense - discontinued operations 6,250 C. Current income tax payable Current tax expense - discontinued operations 17,500 7,500 D. Current tax expense - discontinued operations Current income tax payable 15,000 15,000 #7 Answers

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