Reference no: EM132829246

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.:

1. Gain from settlement of life insurance of officers and employees where the corporation is named the beneficiary, P50,000;
2. Dividend revenue received from a Moon Corp., a domestic corporation, P78,000;
3. Dividend revenue received from a Fire Co., a foreign corporation, P56,000;
4. Interest on bank deposits, P4,500;
5. Capital gain on sale of land, P138,000;
6. Fines and penalties for violation of law, P90,000;
7. Premiums on life insurance for officers and employees (the company is the beneficiary), P50,000;
8. Impairment on Goodwill, P45,000; and
9. Actual charitable contributions, P160,000.

Problem 1: If there are no temporary differences, how much is Life Goes On's financial income subject to tax during the year?