Question: A company bought a machine for Rs . 4 0 , 0 0 0 with a life of 8 years with no residual value. Taxation

A company bought a machine for Rs $. 40, 000$ with a life of $8$ years with no residual value. Taxation authorities allow a depreciation allowance is $25 %$ on a straight $-$ line basis. Tax rate is $30 % .$

A $.$ Calculate the timing difference over the entire life of the asset as per IAS $- 12 .$

B $.$ Calculate the deferred tax for the first four years.

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