How much is the income tax payable

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Reference no: EM132785559

The accountant of Light Company received the following as compensation during the current taxable year:

a. Cash amounting to P850,000 representing his annual basic salary.

b. A second-hand motor vehicle with an acquisition value of P950,000. The accumulated depreciation at the time of payment was P450,000. The prevailing market value of a similar vehicle at the time of payment was P600,000

c. Non-interest-bearing note of P400,000, payable in three years. The prevailing market rate of a similar note is 12%. The present value factor of 12% for 3 years is 0.71178

d. Christmas bonus, 13th month pay and cash gift of 50,000.

problem 1: How much is the income tax payable?

Select one:

a. 395,413.60
b. 460,000
c. 30,000
d. 410,413.60

Reference no: EM132785559

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