Sure Ako Corporation reported pretax income of P4,500,000 for the year ended December 31, 2022. The controller is unfamiliar with required treatment of temporary and permanent differences in reconciling taxable income to pretax financial income and has contacted you for an advice. The company record shows the following differences: Tax depreciation in excess of book depreciation P550,000 Proceeds from life insurance policy upon death of an officer* 250,000 Interest revenue on bank deposits 196,000 *The beneficiary of the insurance policy is Sure Ako Corporation. Tax rate is 30% in 2022 and in the future. Payments in previous quarters totaled P450,000. How much is the total income tax expense for the year 2022?
Sure Ako Corporation reported pretax income of P4,500,000 for the year ended December 31, 2022. The controller is unfamiliar with required treatment of temporary and permanent differences in reconciling taxable income to pretax financial income and has contacted you for an advice. The company record shows the following differences:
|
Tax |
P550,000 |
|
Proceeds from life insurance policy upon death of an officer* |
250,000 |
|
Interest revenue on bank deposits |
196,000 |
*The beneficiary of the insurance policy is Sure Ako Corporation.
Tax rate is 30% in 2022 and in the future. Payments in previous quarters totaled P450,000. How much is the total income tax expense for the year 2022?
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