Solution-How much is the total tax expense for the current

How much is the total tax expense for the current year

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Question - The Chief Financial Officer of ABC Company has presented the following information in line with the 2020 audit of ABC's financial statements:

Pre-tax financial income: P9,700,000

Interest income on tax-exempt municipal bonds: 300,000

Depreciation claimed on the tax return in excess of financial depreciation: 500,000

Warranty expense reported in the income statement: 200,000

Actual warranty costs paid: 50,000

Income tax rate is 30%. At the beginning of the current year, the entity reported a deferred tax asset is zero and the deferred tax liability at P90,000. How much is the total tax expense for the current year?

Reference no: EM133073267

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How much is the total tax expense for the current year

Reference no: EM133073267

Reference no: EM133073267

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