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What amount should be reported as current tax liability

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Reference no: EM133102040

Problem - Miguel Company made an accounting profit of P6,200,000 for the current year which included the following items of income and expense:

Donation to political parties (Nondeductible)

P500,000

Depreciation - 20%

1,000,000

Annual leave expense

500,000

Rent revenue

960,000

Income tax rate

30%

For tax purposes, the depreciation rate is 25%, the annual leave paid P750,000, and the rent received is P800,000. The entity followed the cash basis for tax purposes. What amount should be reported as current tax liability at year-end?

Reference no: EM133102040

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