At the end of the first year of operations. an entity had taxable temporary differences totaling P3,000,000. Of this total, P500,000 relates to current items. The entity also had deductible temporary differences totaling P1,000,000, P250,000 of which relates to current items. Pretax financial income for the current year was P20,000,000. The tax rate is 30%. What is the net deferred tax expense or benefit for the current year?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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At the end of the first year of operations. an entity had taxable temporary differences totaling P3,000,000. Of this total, P500,000 relates to current items. The entity also had deductible temporary differences totaling P1,000,000, P250,000 of which relates to current items. Pretax financial income for the current year was P20,000,000. The tax rate is 30%.

What is the net deferred tax expense or benefit for the current year?

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