E. An entity reported the following assets and liabilities at year-end: Carrying Amount Tax Base Property 10,000,000 7,000,000 Plant and equipment 5,000,000 4,000,000 Inventory 3,000,000 4,000,000 Accounts receivable 2,500,000 3,000,000 Liabilities 6,000,000 5,500,000 The entity had made a provision for inventory obsolescence of P1,000,000. Further, an impairment loss against accounts receivable of P500,000 has been made. The tax rate is 25%. 1. What amount should be reported as deferred tax liability? 2. What amount should be reported as deferred tax asset?
E. An entity reported the following assets and liabilities at year-end:
Carrying Amount Tax Base
Property 10,000,000 7,000,000
Plant and equipment 5,000,000 4,000,000
Inventory 3,000,000 4,000,000
Liabilities 6,000,000 5,500,000
The entity had made a provision for inventory obsolescence of P1,000,000. Further, an impairment loss against accounts receivable of P500,000 has been made. The tax rate is 25%.
1. What amount should be reported as
2. What amount should be reported as
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