The deferred tax liability was caused by accelerated depreciation and the deferred tax asset is for rentals received in advance. What amount of total expense should be recognized in 2021?

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Boom Company reported current tax expense of P5,000,000 for 2021. The changes in assets and liabilities are as follows: December 31, 2021 December 31, 2020 Deferred tax asset 1,000,000 800,000 Deferred tax liability 450,000 600,000 Income tax payable 500,000 200,000 Boom Company reported current tax expense of P5,000,000 for 2021. The changes in assets and liabilities are as follows: December 31, 2021 December 31, 2020 Deferred tax asset 1,000,000 800,000 Deferred tax liability 450,000 600,000 Income tax payable 500,000 200,000

Answer rating: 100% (QA)

Answer To determine the total tax expense for 2021 we need to consider the current ... View the full answer