ANSWER: C

Current tax expense P2,100,000

Increase in deferred tax liability 1,750,000
Increase in deferred tax asset (385,000)
Total income tax expense P3,465,000

Alternative computation:
Accounting profit subject to income tax P9,900,000
Multiply by income tax rate 35%
Total income tax expense P3,465,000

Tax expense (tax income) is the aggregate amount included in the

determination of profit or loss for the period in respect of
current tax and deferred tax. It comprises current tax expense
(current tax income) and deferred tax expense (deferred tax
income)