question archive Pine Company reported pretax financial income of P800,000 for the year ended December 31, 2018
Pine Company reported pretax financial income of P800,000 for the year ended December 31, 2018
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Pine Company reported pretax financial income of P800,000 for the year ended December 31, 2018.
In the computation of income taxes, the following data were considered:
Nontaxable gain 350,000
Depreciation deducted for tax purposes in excess of depreciation deducted
for book purposes 50,000
Estimated tax payment in 2018 70,000
Enacted tax rate 30%
What is the total income tax expense?
a. 120,000
b. 135,000
c. 240,000
d. 85,000
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Answer:
b .
Step-by-Step explanation
| pretax income | P800,000 |
| Nontaxable gain | P350,000 |
| Taxable income | P450,000 |
| Tax rate | 30% |
| Total income tax expense | (450,000*30%)=P135,000 |
