Reference no: EM133017080

Question - During the year 2020, Rathalos Company had current tax expense of P300,000, deferred tax asset of P64,000 and a deferred tax liability of P175,000. It is ascertained that the temporary difference that give rise to the deferred tax asset will reverse in 2021 while the temporary difference that give rise to a deferred tax liability will reverse in 2022. Tax rate are as follows: 2020 - 30%; 2021 - 32%; and 2022 - 35%. What is the accounting income?

On December 31, 2014, South Company has revalued a property and has recognized the increase in the revaluation in the financial statements. The carrying amount of the property was P6,000,000 and the revalued amount was P10,000,000. However, the tax base of the property was only P8,000,000. The income tax rate is 30%. What is the deferred tax asset or liability on December 31, 2014?

On January 1, 2020, Bearwin Company bought an asset for P1,000,000 to be depreciated using the sum of years' digits for 5 years with zero residual value. However, for tax purposes, Bearwin depreciated the asset using straight-line basis. Tax rate effective in 2020 was 32% and 30% in the future years. What is the deferred tax asset/liability to be recognize in 2020?

On June 1, 2020, Rathian Company received P432,000 cash from an operating lease for 3 years. The effective tax rates are as follows: 2020 - 32%; 2021 - 35%; 2022 - 30%; and 2023 - 34%. What is the deferred tax asset to be recognized on December 31, 2020?

Noy Company had a deferred tax liability due to a temporary difference at the beginning of 2020 related to excess depreciation of P600,000. In December 2020, a new income law is enacted that increases the income tax rate from 25% to 30%, effective January 1, 2022. The future taxable amount related to the temporary difference is to be reversed by P300,000 for 2021 and P300,000 for 2022. What is the amount of increase or decrease in the deferred tax liability on December 31, 2020?