Problem 16-10 (IFRS) Complex Company reported pretax accounting income of P12,800,000 for 2022 and P18,300,000 for 2023. The income tax rate is 25%. On January 1, 2022, the entity had deferred tax asset of P375,000 and no deferred tax liability. The deferred tax asset was due to a provision of P500,000 recognized on December 31, 2021 settled in 2022 at which time it was tax deductible. The other reason for the deferred tax asset was rent of P1,000,000 collected in 2021 but earned only in 2022. Life insurance premiums of P200,000 were recognized each year on key officers for 2022 and 2023. The entity is the beneficiary of the life insurance policy. The entity paid for a two-year casualty insurance for P6,000,000 on January 1, 2022. The entire premium is tax deductible when paid. The entity collected rent from leasing its equipment. The rent was recognized as revenue when earned but taxable when collected. Rent collected Rent earned 2022 2023 3,300,000 3,500,000 1,500,000 3,300,000. The entity had trading investments. All gains and losses are recognized for tax purposes when the investments are sold. During 2022, the entity recognized P1,700,000 unrealized losses on trading investments which were sold in 2023. Required: 1. Compute taxable income for 2022 and 2023. 2. Compute current tax expense and total tax expense for 2022 and 2023. 3. Compute deferred tax asset and deferred tax liability on December 31, 2022. 4. Compute deferred tax asset and deferred tax liability on December 31, 2023. 5. Prepare journal entries for 2022 and 2023. 521