1. How does IFS differ from U.S. GAP with respect to accounting for development costs? A. U.S.GAP does not allow capitalization of development costs, even after technically feasible, whereas IFRS does. B. U.S.GAP requires expensing of all development costs and IFS requires capitalizing all development costs. C. U.S.GAAP requires capitalization of development costs, whereas IFS makes capitalization of these costs optional. D. U.S.GAAP treats development costs as part of goodwill, whereas IFS treats these costs as an intangible asset.

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ABC Company (ABC), a manufacturer of hybrid engine vehicles, had pretax financial income of P30 billion for the year 20X1, its first year of operations. ABC has a current tax rate of 24% and a future enacted tax rate of 21%. The following differences between financial and taxable income were reported by ABC for the current year (all numbers in millions):

I.	Excess of tax depreciation over book depreciation	11,500
II.	Interest revenue on municipal bonds	1,600
III.	Estimated warranty expense over actual expenditures	9,000
IV.	Fines paid	6,400
V.	Unrealized gains on marketable securities recognized for financial reporting	3,000

A. Calculate ABCs taxable income

B. Calculate ABCs current tax payable

C. Calculate ABCs deferred tax liability