BDO Company reported the following on December 31, 2015:
Income before tax for accounting purposes P12,000,000;
Rent expense for financial accounting purposes is P2,000,000
Rent expense for tax purposes is P1,000,000;
Tax depreciation is P3,200,000
Accounting depreciation is P1,700,000;
Loss on a case incurred but not yet paid so tax-deductible in the future is P700,000. The tax rate is 30%.
Question:
What is the amount of the deferred tax expense?
What is the amount of deferred tax asset?