Problem $6$

Tantrum Company began operations at the beginning of the current year. At the end of first year of operations, the entity reported P$6,000,000$ income before income tax in the income statement but only P$5,100,000$ taxable income in the tax return.

Analysis of the P$900,000$ difference pertains to P$500,000$ permanent difference and P$400,000$ was a temporary tax liability difference related to current asset. The current and future enacted rate is $30\%.$

$5.$ How much is amount of current tax expense?

A$.1,800,000$

B$.1,530,000$

C$.1,380,000$

D$.$ None of the above.

$6.$ What amount should be reported as total income tax expense?

A$.1,800,000$

B$.1,530,000$

C$.1,650,000$

D$.$ None of the above.