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Question - A company has an after-tax profit of P780,000 with the following transactions:
a) Unearned income of P600,000 and P400,000 as of April 1 and December 31, respectively.
b) Prepaid expense of P800,000 and P500,000 as June 30, and December 31, respectively.
c) Interest from bank deposit amounting to P100,000.
d) The company has no estimated income tax payment made during the year.
e) Income tax rate is 35%
How much is the deferred tax asset?
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