Reference no: EM132788190

Tala Corp. reported net income for the current year 2019 at P10,000,000 before taxes. Included in the determination of the said net income were:

Permanent differences:

Non-deductible expenses P100,000
Non-taxable income 500,000

Temporary differences:

Accrued warranty expenses 250,000
Rental payments made in advance 400,000
Advance collections from customers 500,000
Provision for probable losses 900,000
Income tax rate is 40% and is not expected to change in the future.

Question 1: How much is the current tax expense?

Question 2: How much is the total tax expense?

Question 3: What is the total deferred tax asset to be presented in the 2019

Question 4: What is the total deferred tax liability to be presented in the 2019 Statement of Financial position?

Question 5: Assuming that the expected income tax rate for the following year is 35%, what is the total tax expense?

Question 6: Assuming that the expected income tax rate for the following year is 35%, what is the total tax asset?

Question 7: Assuming that the expected income tax rate for the following year is 35%, what is the total tax liability?