INTERMEDIATE ACCOUNTING -2 4. E DI SA PUSO MO company provided the information at year end: Carrying amount Tax base Building 10,000,000 8,000,000 Heavy machinery 5,000,000 4,000,000 Merchandise Inventory 2,500,000 3,000,000 Account receivables 6,000,000 7,000,000 Warranty liability 2,000,000 400,000 Advance Deposit 2,000,000 0 received Delivery Van 6,500,000 5,000,000 Provision for litigation 1,000,000 0 Additional information was as follows: a) Deposit received in advance is taxable b) Warranty cost is deductible when incurred and paid c) Additional allowance for doubtful accounts was recorded for accounting purposed but as for BIR deductible only if written off. d) During 2020, the company received a lawsuit for copy right infringement and it is expected to be settled in 2021. The cost of litigation is deductible only when paid. e) The company recorded a provision for inventory obsolescence amounting to 500,000 () The company also reported in its financial statement interest on deposit amounting to 10,000, Dividend received 20,000 and incurred tax penalties and charges for late payment amounting to 5,000. g) The company reported a financial income of 20,000,000 h) Tax rate is 30% Option 1 How much is the financial income subject to tax * 1 point Your answer how much is the deferred tax liability? * 1. point Your answer how much is the deferred tax asset? * 1 point Your answer How much is the income tax expense? * 1 point Your