Question
In 2020, YELLOW Company reported for financial statement purposes the following items, which were not included in taxable income: - Installment sales receivable to be
In 2020, YELLOW Company reported for financial statement purposes the following items, which were not included in taxable income:
- Installment sales receivable to be collected equally in 2021 to 2023, P1,500,000
- Estimated future warranty costs to be paid equally in 2021 to 2023, P2,100,000
There were no other temporary differences in prior years. YELLOWs enacted tax rates are 30% for 2020-2021 and 35% for 2022 thereafter. The company has the legally enforceable right to offset deferred tax liabilities against deferred tax asset. In YELLOWs December 31, 2020 statement of financial position, what is the amount of the net deferred tax asset that should be classified as non-current?
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