Solution-What is the deferred tax asset

What is the deferred tax asset

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Reference no: EM132825759

Problem - Susan company reported taxable income of P8,000,000.00 in the income tax return for the first year of operations. The enacted income tax rate is 30% for the current year and future year.

Temporary differences between financial income and taxable income for the year are:

Tax depreciation in excess of book depreciation P800,000.00

Accrual for product liability claim in excess of actual claim 1,200,000.00

Reported installment sales income in excess of taxable installment sales income 2,600,000.00

Required - What is the deferred tax asset?

Reference no: EM132825759

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What is the deferred tax asset

Reference no: EM132825759

Reference no: EM132825759

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