A company commenced business on 1 July 2012. On 30 June 2013, an extract of the statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information:

Additional information:
The plant was acquired on 1 July 2012. Depreciation for accounting purposes was 10% (straight-line method), while 15% (straight-line) was used for tax purposes.
The tax rate is 30%.
Using the following worksheet, determine the deferred tax asset and deferred tax liability.

The deferred tax liability is:

Question

A company commenced business on 1 July 2012. On 30 June 2013, an extract of the statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information:

Additional information:
The plant was acquired on 1 July 2012. Depreciation for accounting purposes was 10% (straight-line method), while 15% (straight-line) was used for tax purposes.
The tax rate is 30%.
Using the following worksheet, determine the deferred tax asset and deferred tax liability.

The deferred tax liability is:

Quizplus · Accepted Answer

The Answer of A company commenced business on 1 July 2012. On 30 June 2013, an extract of the statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information:

Additional information:
The plant was acquired on 1 July 2012. Depreciation for accounting purposes was 10% (straight-line method), while 15% (straight-line) was used for tax purposes.
The tax rate is 30%.
Using the following worksheet, determine the deferred tax asset and deferred tax liability.

The deferred tax liability is:

A Company Commenced Business on 1 July 2012