Find what amount included in the deferred tax liability

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Reference no: EM132755402

Problem 1: In its 2020 income statement, Lob Corp. reported depreciation of P370,000 and interest revenue on municipal bonds of P70,000. Labs reported depreciation of P500,000 in its 2020 income tax return. The difference in depreciation is the only difference, and it will reverse equally over the next three years. Enacted tax rate for all years is 30%. What amount should be included in the deferred tax liability in Lab's December 31, 2020 balance sheet?

Reference no: EM132755402

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