AJ Company computed a pretax accounting income of P5,000,000 for its first year of operations ended December 31, 2016. In preparing the income tax return for 2016, the following differences are noted between accounting income and taxable income. Nondeductible expenses 200,000 Nontaxable revenue 500,000 Gross income on installment sales included in Accounting income but not in taxable income (Expected to reverse in 2017) 1,000,000 Bad debts expense (bad debts for tax purposes was P0) 100,000 Income tax rate 3% The current tax expense is?
AJ Company computed a pretax accounting income of P5,000,000 for its first year of operations ended December 31, 2016. In preparing the income tax return for 2016, the following differences are noted between accounting income and taxable income.
Nondeductible expenses 200,000
Nontaxable revenue 500,000
Gross income on installment sales included in
Accounting income but not in taxable income
(Expected to reverse in 2017) 1,000,000
Income tax rate 3%
The current tax expense is?
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