Problem $2$

An entity reported the following assets and liabilities at year$-$end: Per Books Per Tax return

Land $11,566,3009,855,000$

Machinery and equipment $5,410,0004,557,800$

Inventory $2,500,0005,250,000$

Accounts receivable $3,581,0004,360,000$

Liabilities $6,879,0005,750,000$ The entity had made a provision for inventory obsolescence of P$2,750,000.$ Further, an impairment loss against accounts receivable of P$779,000$ has been made. Pre$-$tax accounting income is P$11,000,000.$ The income tax rate is $25\%.$

$1.$ What amount should be reported as current tax expense?

A$.640,875$

B$.1,164,500$

C$.2,750,000$

D$.3,273,625$

$2.$ What amount should be reported as deferred tax asset?

A$.640,875$

B$.1,164,500$

C$.2,750,000$

D$.3,273,625$

$3.$ What amount should be reported as deferred tax liability?

A$.640,875$

B$.1,164,500$

C$.2,750,000$

D$.3,273,625$

$4.$ What amount should be reported as total income tax expense?

A$.640,875$

B$.1,164,500$

C$.2,750,000$

D$.3,273,625$