Reference no: EM132846443
Question - Unity Company is in the first year of operations and reported pretax accounting income of P4,000,000. The entity provided the following information for the first year:
Premium on life insurance of key officer 200,000
Depreciation on tax return in excess of book depreciation 200,000
Interest on municipal bonds 50,000
Warranty expense 40,000
Actual warranty repairs 30,000
Bad debt expense 60,000
Ending balance in allowance for bad debts 40,000
Rent received in advance that will be recognized evenly over the next three years 300,000
Required - How much is the accounting profit subject to tax?
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How much is the accounting profit subject to tax
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