Solution-What amount should be added to the deferred tax

What amount should be added to the deferred tax liability

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Problem 1: Zambal Company reported depreciation of P2,500,000 in the tax return for the current year. However, in the income statement, the entity reported depreciation of P1,000,000. The difference in depreciation is a temporary difference that will reverse overtime. The tax rate is 30%. What amount should be added to the deferred tax liability at year-end?

a. 300,000

b. 750,000

c. 450,000

d. 0

Reference no: EM132706780

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What amount should be added to the deferred tax liability

Reference no: EM132706780

Reference no: EM132706780

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