On 1 April 2015, the company rate of income tax was changed from 35% to 30%. At the previous reporting date (30 June 2014) Montgomery Limited had the following tax balances:
$\bullet$ Deferred tax assets $26 250
$\bullet$ Deferred tax liabilities $21 000
What is the impact of the tax rate change on income tax expense?

Question

On 1 April 2015, the company rate of income tax was changed from 35% to 30%. At the previous reporting date (30 June 2014) Montgomery Limited had the following tax balances: 
$\bullet$ Deferred tax assets $26 250
$\bullet$ Deferred tax liabilities $21 000
What is the impact of the tax rate change on income tax expense?

Quizplus · Accepted Answer

The Answer is A

On 1 April 2015, the Company Rate of Income Tax ∙\bullet∙

On 1 April 2015, the Company Rate of Income Tax $\bullet$