An entity has revalued its property and has recognised the revaluation in its financial statements. The carrying
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An entity has revalued its property and has recognised the revaluation in its financial statements. The carrying value of the property was EUR 16m and the revalued amount is EUR 20m. Tax base of the property is EUR 12m. The tax rate applicable to profits is 35 per cent and the tax rate applicable to profits made on the sale of property is 30 per cent. If the revaluation took place at the entity’s year-end of 31 December 2009, calculate the deferred tax liability on the property as of that date.
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Advanced Financial Accounting An International Approach
ISBN: 9780273712749
1st Edition
Authors: Jagdish Kothari, Elisabetta Barone
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