Alaska Company is determining the amount of its taxable income for 2021 by making adjustment to its financial income. The income statement reported pretax financial income of P4,000,000. Following are the items that may be required to determine taxable income:

Accelerated depreciation for income tax purposes was P1,200,000 and straight-line depreciation on these assets is P1,000,000.

Goodwill impairment loss of P500,000 was not included as a deduction in the tax return but may be deducted in the income statement.Interest on treasury bills is in the tax return.

During the year, P800,000 was received on these investments.Tax Rate is 30%

How much is the deferred tax liability to recognized by Alaska?

What was Alaska's income subject to tax?

What was Alaska's current tax expense?

Answer rating: 100% (QA)

To determine the deferred tax liability to be recognized by Alaska we need to identify the temporary ... View the full answer