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United Emirates Company began operations at the beginning of 2018. At the end of 2018, the company reported P12,000,000 income before tax in the income
United Emirates Company began operations at the beginning of 2018. At the end of 2018, the company reported P12,000,000 income
before tax in the income statement but only P10,200,000 taxable income in the tax return. Analysis of the P1,800,000 difference revealed
that P1,000,000 was a permanent difference and P800,000 was a temporary tax liability difference related to a current asset. The enacted
tax rate for 2018 and future years is 30%.
1. What is the current tax expense?
A. 3,060,000 B. 3,300,000 C. 3,600,000 D. 3,900,000
2. What is the income tax expense to be reported in the income statement for the year 2018?
A. 3,060,000 B. 3,300,000 C. 3,600,000 D. 3,900,000
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