On 1 January 20x6, a company has a deferred tax liability of R50 000, stemming from a temporary difference in the carrying value and tax base of its fixed assets. The following information is available concerning these fixed assets at the company’s year-end date of 31 December 20x6:

-carrying value: R10 000 000;

-Tax base: R9 000 000;

If the company is subject to a 25% corporation tax, calculate deferred tax movement which has occurred based on these fixed assets in the 2006 financial year.

Answer rating: 100% (QA)

answer Taxable temporary difference as on dec 31 10000000 9... View the full answer