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Jin Company’s income tax return showed taxable income of P4,000,000 on which a tax liability of P1,200,000 has been recognized. Additional information are as follows: * Accelerated depreciation for income tax purposes was P500,000. Straight-line financial depreciation on the assets is P400,000. * Goodwill impairment loss of P300,000 was not included as a deduction in the tax return but may be deducted in the income statement. * Interest income on treasury bills was not included in the tax return.During the year, P600,000 was received on these investments. What is the pretax financial income of Jin?  a. P4,100,000 b. P4,200,000 c. P4,300,000 d. P4,400,000

Jin Company’s income tax return showed taxable income of P4,000,000 on which a tax liability of P1,200,000 has been recognized. Additional information are as follows: * Accelerated depreciation for income tax purposes was P500,000. Straight-line financial depreciation on the assets is P400,000. * Goodwill impairment loss of P300,000 was not included as a deduction in the tax return but may be deducted in the income statement. * Interest income on treasury bills was not included in the tax return.During the year, P600,000 was received on these investments. What is the pretax financial income of Jin?  a. P4,100,000 b. P4,200,000 c. P4,300,000 d. P4,400,000

FINANCIAL ACCOUNTING
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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Jin Company’s income tax return showed taxable income of P4,000,000 on which a tax liability of P1,200,000 has been recognized. Additional information are as follows: * Accelerated depreciation for income tax purposes was P500,000. Straight-line financial depreciation on the assets is P400,000. * Goodwill impairment loss of P300,000 was not included as a deduction in the tax return but may be deducted in the income statement. * Interest income on treasury bills was not included in the tax return.During the year, P600,000 was received on these investments.

What is the pretax financial income of Jin? 

a. P4,100,000

b. P4,200,000

c. P4,300,000

d. P4,400,000

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