Reference no: EM132971259

Problem - A closely-held corporation, deemed committed unreasonably accumulating its income, shows the following data:

Paid-up capital P10,000,000

Accumulated Earnings - unrestricted 8,000,000

Accumulated Earnings - restricted 2,000,000

Income tax per annual income tax return 300,000

Income tax for the first three quarters 240,000

Final tax on passive income at 20% 60,000

Capital gains tax at 15% 45,000

Required - Compute the amount of improperly accumulated earnings tax (IAET).