Reference no: EM133125795

Question - After 2 years of operations, a domestic corporation established in 2022, which is primarily engaged in the sale of inventory, reported the following income and expenses:

3rd Year

Sales P3,000,000

Cost of sales P800,000

Operating expenses P2,100,000

Royalty income, net of tax P80,000

Interest income, net of tax P20,000

Dividend income from domestic corp. P50,000

Rent Income P50,000

Quarterly tax paid P40,000

4th Year

Sales P4,500,000

Cost of sales P1,400,000

Operating expenses P3,100,000

Royalty income, net of tax P160,000

Interest income, net of tax P32,000

Dividend income from domestic corp. P60,000

Rent Income P60,000

Quarterly tax paid P30,000

5th Year

Sales P6,000,000

Cost of sales P1,600,000

Operating expenses P3,800,000

Royalty income, net of tax P120,000

Interest income, net of tax P16,000

Dividend income from domestic corp. P70,000

Rent Income P80,000

Quarterly tax paid P60,000

Required - Compute the income tax payable for the 5th Year.