Artwork Inc.'s financial reporting year ends June 30 and it reports quarterly. This means that the financial reporting is from July of one year to June 30 of next year. The tax year ends December 31. The entity reported the following income before tax for the financial year from July 1, 2020 to June 30, 2021: July 1, 2020 to September 30, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter P1,000,000 October 1, 2020 to December 31, 2020 January 1, 2021 to March 31, 2021 April 1, 202 to June 30, 2021 2,000,000 3,000,000 4,000,000 The effective income tax rate is 30% for 2020 and 25% for 2021. What is the total tax expense?
Artwork Inc.'s financial reporting year ends June 30 and it reports quarterly. This means that the financial reporting is from July of one year to June 30 of next year. The tax year ends December 31. The entity reported the following income before tax for the financial year from July 1, 2020 to June 30, 2021: July 1, 2020 to September 30, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter P1,000,000 October 1, 2020 to December 31, 2020 January 1, 2021 to March 31, 2021 April 1, 202 to June 30, 2021 2,000,000 3,000,000 4,000,000 The effective income tax rate is 30% for 2020 and 25% for 2021. What is the total tax expense?
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 10P
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38. What is the total tax expense?
A. P750,000
B. P600,000
C. P2,550,000
D. P300,000
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