Problem 16-3 (IAA) On January 1, 2022, Aye Company purchased an equipment for P1,000,000. The equipment had an estimated useful life of 4 years and no residual value. The entity used the straight line method of depreciation for accounting purposes and the SYD method for tax purposes. The comparative depreciation charges for each of the four years are: The depreciation charge is the only timing difference between the accounting income and taxable income. Aye Company generated P6,000,000 income before depreciation and tax for each of the four years and that the applicable tax rate is 25%. Required: 1. Prepare journal entries to record income tax and deferred tax for each of the four years. 2. Prepare a partial income statement for 2023 . 3. Prepare a partial income statement for 2024. 4. Prepare a partial income statement for 2025.. Problem 16-3 (IAA) On January 1, 2022, Aye Company purchased an equipment for P1,000,000. The equipment had an estimated useful life of 4 years and no residual value. The entity used the straight line method of depreciation for accounting purposes and the SYD method for tax purposes. The comparative depreciation charges for each of the four years are: The depreciation charge is the only timing difference between the accounting income and taxable income. Aye Company generated P6,000,000 income before depreciation and tax for each of the four years and that the applicable tax rate is 25%. Required: 1. Prepare journal entries to record income tax and deferred tax for each of the four years. 2. Prepare a partial income statement for 2023 . 3. Prepare a partial income statement for 2024. 4. Prepare a partial income statement for 2025