Reference no: EM133189052
Question - ABC Company is determining the amount of its pretax financial income for 2015 by making adjustment to taxable income from the company's 2015 tax return. The tax return indicates taxable income of P15,000,000 on which a tax liability of P4,800,000 has been recognized. Following is a list of items that may be required to determine pretax financial income from the amount of taxable income.
Accelerated depreciation for income tax purposes was P2,000,000 and straight line financial depreciation is P1,500,000.
Insurance premium of P100,000 on the life of an officer with ABC Company as beneficiary was not included as a deduction in the tax return.
Interest on treasury bills was not included in the tax return. During the year, La ABC received P2,500,000 on these investments.
Required - What was La ABC Company's pretax financial income?
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