Reference no: EM132789253

Question - Shiny Corporation entered into a 3-year lease agreement with Shimmering Inc. on March 1, 2007 for the exclusive use of the latter's equipment. Total rent for the duration of the agreement will be P1,440,000: P50,000 for the first year; P45,000 for the second year; P25,000 for the third year. Payments are to be made in advance, and both entities use the calendar year.

How much rent expense should Shiny report in its financial statements for the year ended December 31, 2007?

Shiny Corporation's total cash outlay for the year 2007 would be: During the current year, Tiger Company reported pretax financial income of P5,000,000. Included in the pretax financial income are P900,000 of non-taxable life insurance proceeds received as a result of the death of an officer, P1,200,000 of estimated warranty expense accrued at year-end, and P200,000 of life insurance premiums for a policy for an officer. No income tax was previously paid during the year and the income tax rate is 30%. What is the income tax payable at year-end?