Find what income tax payable is

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Reference no: EM132788522

Lax Company at the end of 2019, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:

Pretax financial income P900,000;

Estimated litigation expense P1,200,000;

Extra depreciation for taxes (P1,800,000);

Taxable income P400,000.

Problem 1: The estimated litigation expense of P1,200,000 will be deductible in 2020 when it is expected to be paid. Use of the depreciable asset will result in taxable amounts of P600,000 in each of the next three years. The income tax rate is 30% for all years. Income tax payable is

Reference no: EM132788522

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