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Dora Company leased office premises to Fox Inc. for a 4 year term beginning January 2, 2016. Under the terms of the operating lease, rent for the first year is Php 216,000 and rent for years 2 through 4 is Php 337,500 per annum. However, as an inducement to enter the lease, Fox was allowed to use the leased asset rent-free for the first three months.
Required:
Problem 1: In its December 31, 2016 balance sheet of Dora Company, what amount should be reported as deferred tax liability?
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