Reference no: EM132929382

Question - Pecorino Company had a pretax financial income of P2,500,000 in the current year. The entity made corporate estimated tax payment in the amount of P180,000 during the current year. To compute the provision for income tax, the following information was provided:

Interest income received 360,000

Tax depreciation in excess of financial statement amount 160,000

Rent received in advance 280,000

Corporate tax rate 30%

1. What amount of permanent differences between book income and taxable income existed at year-end?

2. What amount of current tax expense should be reported?

3. What amount of income tax payable should be reported?

4. What amount of total tax expense should be reported?