Problem 1: JAY Co. reported net income for the current year 2021 at P2,395,000 before...
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Problem 1: JAY Co. reported net income for the current year 2021 at P2,395,000 before taxes. Included in the determination of the said net income were: Non-deductible expenses Accrued warranty expenses Rental payments made in advance Advance collections from customers Non-taxable income Provision for probable losses P 319,200 54,000 P 210,000 P 171,500 125,800 65,000 The income tax rate is 30% and is not expected to change in the future. Required: 1. 2. How much is the current tax expense? How much is the total tax expense? 3. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position? 4. What is the total deferred tax liability to be presented in the 2021 Statement of Financial Position? 5. Assuming that the expected income tax rate for the following year is 32%, what is the total tax expense? 6. Assuming that the expected income tax rate for the following year is 32%, what is the total deferred tax liability
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