At year-end of the first year of operations, Liezl Company had taxable temporary differences totaling P3,000,000. Of this total, P500,000 relates to current items. The entity also had deductible temporary differences totaling P1,000,000, P250,000 of which relates to current items. Pretax financial income for the current year was P20,000,000. The income tax rate is 30%. What amount should be reported as income tax payable at year-end? 6,600,000 O 5,400,000 O 5,925,000 6,000,000

At year-end of the first year of operations, Liezl Company had taxable temporary differences totaling P3,000,000. Of this total, P500,000 relates to current items. The entity also had deductible temporary differences totaling P1,000,000, P250,000 of which relates to current items. Pretax financial income for the current year was P20,000,000. The income tax rate is 30%. What amount should be reported as income tax payable at year-end? 6,600,000 O 5,400,000 O 5,925,000 6,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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