What is the current tax liability at year-end

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During the current year, Everlasting Company reported accounting income of P9,000,000 before income tax. The entity revealed the following information for the current year:

Interest income on government bonds 700,000

Depreciation claimed on tax return in excess of depreciation 1,300,000 per book

Warranty expense on the accrual basis 600,000

Actual warranty payment 300,000 Income from installment sale reported for tax purposes in 200,000 excess of income recognized per book

Income tax rate 30%

Problem 1: What is the current tax liability at year-end?

Reference no: EM132727160

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