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Masd Inc. had the following noncurrent asset account balance at December 31, 2009: Deferred tax asset 360.000 Transactions during 2010 and other information relating to
Masd Inc. had the following noncurrent asset account balance at December 31, 2009: Deferred tax asset 360.000 Transactions during 2010 and other information relating to the noncurrent assets Masd. Inc. were as follows: Deferred tax asset is provided in recognition of temporary differences between accounting and tax reporting of rent income and warranty liability. For the year ended December 31, 2010 (1) rent collected in advance decreased by P200,000, and (2) product warranty liability increased by P150.000. Masd income tax rate for 2010 was 35%. b. On July 1, 2010. Masd purchased as a long-term investment P10.000.000 face value of Lee Corporation original issue of 8% bonds for P9.230.000. The bonds, which were priced to yield 10%, pay interest semiannually on January 1 and July 1, and mature on July 1. 2015. 1. The carrying amount of the investment in bonds as of December 31, 2010 is? 2. The carrying amount of deferred tax assets as of December 31, 2010 is
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