The total income tax expense for the year 2020 would be?
14. The records for ABC Co. show this data for 2020:
• Gross profit on installment sales recorded on the books was P300,000. Gross profit from collections of installment receivables was P220,000.
• Life insurance on officers was P3,800. (ABC Company is the beneficiary.)
• Machinery was acquired in January for P300,000. Straight-line
• Interest received on tax exempt Iowa State bonds was P9,000.
• The estimated warranty liability related to 2020 sales was P19,600. Repair costs under warranties during 2020 were P13,600. The remainder will be incurred in 2021. For tax purposes. Expenses related to warranty is to be deducted when repair costs are actually rendered.
• Pretax financial income is P450,000. The tax rate is 30%.
The total income tax expense for the year 2020 would be?
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