Visayas Corporation has one temporary difference at the end of 2020 that will reverse and cause deductible amounts of 500,000 in 2021, 650,000 in 2020 and 400,000 in 2023. Visayas pretax financial income for 2020 is 2,000,000, and the tax rate is 30% for all years. There are no deferred tax assets or liabilities at the beginning of 2020. Visayas expects profitable operation to continue in the future.

Required:

A.Compute the taxable income and tax expense-current for 2020. Compute also the deferred tax asset at December 31, 2020.

B. Prepare Journal Entries to record income tax expense for 2020