Reference no: EM132762055

Problem 1: In the year-end statement of financial position, Shaded Company had income tax payable of P260,000 and a deferred tax asset of P400,000. At the beginning of the current year, the entity had reported a deferred tax asset of P300,000. No estimated tax prepayments were made during the current year. The entity determined that it was probable that the deferred tax asset would be realized. In the income statement for the current year, what amount should be reported as total income tax expense?