Lolo Inc. had pre-tax accounting income of P900,000 in 2020, its first year of operations. During 2020 the company had the following transactions: • Received rent from Mama, Co. for year 2021- P32,000 • Government bonds interest income- P40,000 • Depreciation for tax purposes in excess of book depreciation- • Installment sales revenue to be collected in 2021-P54,000 . P20,000 At the end of 2020, which of the following deferred tax accounts and balances is reported on Papa, Inc.'s statement of financial position? (assume income tax rate of 40%) A.Deferred tax liability- P20,800 B.Deferred tax liability- P12.800 C.Deferred tax asset- P12,800 D.Deferred tax asset- P20,800

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