JKL Company provided the following information to its accountant to determine the tax due for the current year 2021 as well as any tax consequences of items that cause difference between financial and taxable income:
CASE IV
JKL Company provided the following information to its accountant to determine the tax due for the current year 2021 as well as any tax consequences of items that cause difference between financial and taxable income:
Accounting income before tax, P15,600,000
Accounting
Litigation loss accrued during the year, P80,000, taxable only when paid.
Tax depreciation, P1,500,000
Accrued liability on employees’ health care P250,000
Development cost of computer software, P3,000,000. The computer software is expected to be useful for 3 years starting this year.
Nondeductible expenses, P1,250,000
Nontaxable revenue, P2,100,000
Revenue subject to 20% tax rate, P750,000
Bad debts written off during the year, P45,000
Gross income of installment sales of P450,000 (taxable when collected expected on 2022)
The tax rate applicable for this year onwards is 30%.
QUESTION:
7. Net income for the year is?
Step by step
Solved in 2 steps
