BDO Company reported the following on December 31, 2015: Income before tax for accounting purposes P12,000,000; Rent expense for financial accounting purposes is P2,000,000 Rent expense for tax purposes is P1,000,000; Tax depreciation is P3,200,000  Accounting depreciation is P1,700,000; Loss on a case incurred but not yet paid so tax-deductible in the future is P700,000. The tax rate is 30%. Question: What is the amount of deferred tax asset? What is the net income after tax?

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Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: The following computations are done in the records of the Landmark Company.

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Q: 29. For the year 2016, Sawi Ak Co. reported an income tax expense of P110,000. Income tax payable at…

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Q: Integrity Company reported pre-tax financial income of P400,000 for 2022. In the computation of…

A: >Current Liability is a liability that is to be paid within a short period of time, say within a…

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: Following are the answers to given questions

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Q: What amount shall be reported as current tax liability?

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.