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What amount should be reported as deferred tax expense

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Reference no: EM132816394

Aries Company reported a deferred tax asset of P90,000 on January 1, 2020. During the year, the entity reported pretax financial income of P3,000,000. Temporary differences of P1,000,000 resulted in taxable income of P2,000,000 for the year. On December 31. 2020, the entity had cumulative taxable differences of P700,000. The income tax rate is 30%.

Problem 1: What amount should be reported as deferred tax expense for the current year?

A. 210,000
B. 120,000
C. 600,000
D. 300,000

Reference no: EM132816394

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