As of December 31, 2022, its first year of operations, Batangas Company had taxable temporary differences totaling P3,000,000.  Of this total, P1,000,000 relates to current items.  Batangas also had deductible temporary differences totaling P1,500,000, P250,000 of which relates to current items.  Pretax financial income for the year was P20,000,000.  The income tax rate is 35%.  How much income tax payable should Batangas Company  report on December 31, 2022?

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Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.