GJ commenced business on 1 October 2005, and on that date it acquired property, plant and equipment

Question:

GJ commenced business on 1 October 2005, and on that date it acquired property, plant and equipment for $220 000. GJ used the straight line method of depreciation. The estimated useful life of the assets was five years and the residual value was estimated at $10 000. GJ's accounting year end is 30 September. All the assets acquired qualified for a first year tax allowance of 50% and then an annual tax allowance of 25% of the reducing balance. On 1 October 2007, GJ revalued all of its assets; this led to an increase in asset values of $53 000. GJ's applicable tax rate for the year is 25%.
Required:
Calculate the amount of the deferred tax provision that GJ should include in its at 30 September 2008, in accordance with IAS 12, Income Taxes.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...