In 2020, ABC Company reported pretax financial income of P5,000,000. Included in the pre-tax financial income are P900,000 of nontaxable life insurance proceeds received as a result of the death of an officer, P1,200,000 of estimated warranty expenses accrued as of December 31, 2020, and P200,000 of life insurance premiums for a policy for an officer. No income tax was previously paid during the year and the income tax rate is 30%. What is the income tax payable on December 31, 2020? (Round answer to whole number)
In 2020, ABC Company reported pretax financial income of P5,000,000. Included in the pre-tax financial income are P900,000 of nontaxable life insurance proceeds received as a result of the death of an officer, P1,200,000 of estimated warranty expenses accrued as of December 31, 2020, and P200,000 of life insurance premiums for a policy for an officer. No income tax was previously paid during the year and the income tax rate is 30%. What is the income tax payable on December 31, 2020? (Round answer to whole number)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2020, ABC Company reported pretax financial income of P5,000,000. Included in the pre-tax financial income are P900,000 of nontaxable life insurance proceeds received as a result of the death of an officer, P1,200,000 of estimated warranty expenses accrued as of December 31, 2020, and P200,000 of life insurance premiums for a policy for an officer. No income tax was previously paid during the year and the income tax rate is 30%. What is the income tax payable on December 31, 2020? (Round answer to whole number)
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