Elwood Ltd has the following deferred tax balances as at 30 June 2023: Deferred tax asset $1
Question:
Elwood Ltd has the following deferred tax balances as at 30 June 2023:
Deferred tax asset $1 000 000
Deferred tax liability $800 000
The above balances were calculated when the tax rate was 30 per cent. On 1 December 2023 the government raises the corporate tax rate to 35 per cent.
REQUIRED
Provide the journal entries to adjust the carry-forward balances of the deferred tax asset and deferred tax liability.
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Balance at 30 June 2023 Balance at 1 December 2023 1 000 000 1 000 000 35...View the full answer
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