Reference no: EM132790103

Question - Milan Company reported P9,000,000 income before provision for income tax. The following data are provided for the current year:

Rent received in advance 1,600,000

Income from exempt municipal bonds 2,000,000

Depreciation deduction for income tax purposes in excess of depreciation reported for financial reporting purposes 1,000,000

Estimated tax payment for current year 500,000

Enacted corporate income tax rate 30%

Required - What amount of current income tax liability should be reported at year-end?

2,880,000

2,580,000

2,280,000

1,780,000