Reference no: EM132895837

Question - Life Goes On Inc. had a pretax accounting income of P2,400,000 while the net income before charitable contribution is P2,560,000 during the year. Below are items seen on the records of Life Goes On Inc.:

Gain from settlement of life insurance of officers and employees where the corporation is named the beneficiary, P50,000;

Dividend revenue received from a Moon Corp., a domestic corporation, P78,000;

Dividend revenue received from a Fire Co., a foreign corporation, P56,000;

Interest on bank deposits, P4,500;

Capital gain on sale of land, P138,000;

Fines and penalties for violation of law, P90,000;

Premiums on life insurance for officers and employees (the company is the beneficiary), P50,000;

Impairment on Goodwill, P45,000; and

Actual charitable contributions, P160,000.

If there are no temporary differences, how much is Life Goes On's financial income subject to tax during the year?