Problem $8$

On January $1,2024,$ Easy Company reported deferred tax liability of P$600,000$ and deferred tax assets of zero.

At December $31,2024,$ it was determined that the cumulative future taxable and deductible amounts were P$3,500,000$ and P$500,000$ respectively.

The pre$-$tax financial income is P$5,000,000$ and the income tax rate is $30\%.$

$26.$ What amount should be reported as current tax expense for $2024?$

A$.1,050,000$

B$.1,200,000$

C$.1,650,000$

D$.2,100,000$

$27.$ What amount should be reported as increase on deferred tax asset?

A$.450,000$

B$.150,000$

C$.600,000$

D$.0$

$28.$ What amount should be reported as increase on deferred tax liability?

A$.450,000$

B$.150,000$

C$.600,000$

D$.0$

$29.$ What amount should be reported as net deferred tax expense or benefit for $2024?$

A$.450,000$ expense

B$.450,000$ benefit

C$.300,000$ benefit

D$.300,000$ expense

$30.$ What amount should be reported as total income tax expense for $2024?$

A$.2,100,000$

B$.1,950,000$

C$.1,500,000$

D$.1,650,000$