PROBLEM 2: FOR CLASSROOM DISCUSSION 1. If it is probable that recovery or settlement of a amount of an asset or liability will make future tax paymen larger than they would be if such recovery or settlement we to have no tax consequences, an entity shall recognize a c, a or b a. deferred tax asset. b. deferred tax liability. d. neither a norb 2. These are differences that do not have future consequences. a. Permanent differences b. Temporary differences c. Taxable differences d. Deductible differences 3. This type of difference will give rise to deferred tax asset. a. Taxable temporary difference c. Permanent difference b. Deductible temporary difference d. No difference la 4. Income computed using PFRSs is $100,000 while income computed using tax laws is P80,000. The P20,000 difference is di a. Taxable temporary difference c. Permanent differena b. Deductible temporary difference d. No difference 5. During the period, deferred tax assets increase by 500 while deferred tax liabilities increase by P600. The net change a 100 is a c. deferred tax liability d. deferred tax asset a. deferred tax expense b. deferred tax income