SURVIVE Company reported net income for the current year 2020 before taxes is P3,511,000. The following differences were noted between the financial reporting and tax reporting: Financial Tax Interest on depository accounts P 53,000 Warranty expense 260,000 P 115,000 Revenue from installment sales 584,000 319,000 Advance collections from customers 75,000 Provision for probable losses 406,000 Insurance premiums on senior managers' life insurance 120,000 The income tax rate is 30% and is not expected to change in the future. Estimated tax payments for the last three quarters amounted to P850,000. . 1. At what amount should income tax expense be reflected in the income statement ending December 31, 2020?
INCOME TAXES SURVIVE Company reported net income for the current year 2020 before taxes is P3,511,000. The following differences were noted between the financial reporting and tax reporting: Financial Tax Interest on depository accounts P 53,000 Warranty expense 260,000 P 115,000 Revenue from installment sales 584,000 319,000 Advance collections from customers 75,000 Provision for probable losses 406,000 Insurance premiums on senior managers' life insurance 120,000 The income tax rate is 30% and is not expected to change in the future. Estimated tax payments for the last three quarters amounted to P850,000. . 1. At what amount should income tax expense be reflected in the income statement ending December 31, 2020?
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