1.During the year 2022, MMM Company reported a pretax financial income of P13,500,000. The company revealed the following information for the current year:   

Interest income from bank deposits - P1,050,000

Life insurance annual premium (the company is the beneficiary of this insurance policy) - P150,000

Tax penalties and surcharges - P60,000

Depreciation claimed on income tax return - P4,050,000

Depreciation per accounting records - P2,100,000

Rental payments made in advance - P600,000

Provisions for probable losses - P150,000

Warranty expense on the accrual basis - P900,000

Actual warranty payment - P300,000

Advance collections from customers   - P300,000

Income tax rate for the year 2022 - 30%

Income tax rate for taxable years 2023 onwards - 35%

How much is the Non-Taxable Revenue?

How much is the Non-Deductible Expense?

How much is the Taxable Temporary Difference?

How much is the Deductible Temporary Difference?

How much is the Taxable Income?

Answer rating: 100% (QA)

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