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On Dec. 31, 2019, the accounts of Sile Company have the same basis for accounting and tax purposes, except the following: Accounts receivable Motor vahicle
On Dec. 31, 2019, the accounts of Sile Company have the same basis for accounting and tax purposes, except the following: Accounts receivable Motor vahicle Warranty liability Deposit received in advance Carrying Amount 6,000,000.00 6,500,000.00 2,500,000.00 1,500,000.00 Tax Base 7,000,000.00 5,000,000.00 500,000.00 Depreciation rates for accounting and taxation are 15% and 25%, respectively. The deposit is taxable when received and warranty cost is deductible when paid. An allowance for doubtful accounts of P1,000,000 has been raised against accounts receivable for accounting purposes but such accounts are deductible only when written off as uncollectible. Tax rate is 30% Required: a. DTL? b. DTA? 3. Net deferred tax liability/ benefit
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