ABC Company purchased a machine costing P 10,000,000 on January 1, 2021 with an estimated useful life of 10 years and residual value of P 500,000. It is the company's policy to depreciate this type of asset using double declining balance but for tax purposes, straight-line method is being used. The enacted tax rate for the current and next periods would be 30% and for the last 3 years in the life of the machine the enacted tax rate would be 32%. ABC Company computed the following income in its income tax return for the following years: 2021 1,500,000 2022 2,000,000 2023 2,500,000 2024 3,000,000 2025 2,750,000 2026 3,500,000 2027 4,000,000 2028 3,750,000 2029 1,750,000 2030 4,500,000 Other than the difference in the depreciation method being used for the machine, there is no other difference between ABC's accounting and taxable income during the life of the asset. How much is the income tax payable as of December 31,2025?
ABC Company purchased a machine costing P 10,000,000 on January 1, 2021 with an estimated useful life of 10 years and residual value of P 500,000. It is the company's policy to depreciate this type of asset using double declining balance but for tax purposes, straight-line method is being used. The enacted tax rate for the current and next periods would be 30% and for the last 3 years in the life of the machine the enacted tax rate would be 32%.
ABC Company computed the following income in its income tax return for the following years:
2021 1,500,000
2022 2,000,000
2023 2,500,000
2024 3,000,000
2025 2,750,000
2026 3,500,000
2027 4,000,000
2028 3,750,000
2029 1,750,000
2030 4,500,000
Other than the difference in the
How much is the income tax payable as of December 31,2025?
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