On the early 2021, a company purchased a machine with a cost of RP 6,000 and a commercial useful life of 3 years and a fiscal useful life of 2 years with no salvage value. Machines are put together using the straight-line method both commercially and fiscally. In addition, during 2021 the company also earns Rp. 5,000 and the warranty fee is estimated at 10% of the revenue. The warranty fee is fiscally charged in 2023. The general tax rate is 40%.

 1. Compute the deferred tax asset or liability for the two transactions at the end of 2021 and give your explanation

Answer rating: 100% (QA)

Deferred Tax Calculation for 2021 Transactions Depreciation The machines depreciation is different for commercial and fiscal purposes Warranty Fee The ... View the full answer