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The reported pretax financial income of Laban Company is P2,600,000 and current income tax rate is 30%. Assume the following differences between the financial income
The reported pretax financial income of Laban Company is P2,600,000 and current income tax rate is 30%. Assume the following differences between the financial income and taxable income for the year: . Fines paid P34,000 . Premiums paid on life insurance policy on officers. beneficiary named in the policy is the company, P600,000. . Impairment loss recognized on goodwill, P180,000 . Excess of tax depreciation over book depreciation, P30,000. . Excess of warranty expense over actual expenditures, P27,000. . Excess of estimated uncollectible accounts for financial reporting over the accounts actually written off for tax reporting, P12,000. . Rent collected in advance of period earned, P35,000
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