Bridge Company began operating on 31 July 2019. The company incurred a tax loss for the year ended 30 June 2020 of $210 000. There were deductible temporary differences of $60 000 but no taxable temporary differences. The directors have assessed that is tis probable that the future taxable profits will be available against which any unused tax losses can be set. The tax rate is 30% Which of the following statements is correct as at 30 June 2020? 

 a. Bridge should not recognize a deferred tax assets or deferred tax liability 

b. Bridge should recognize a deferred tax liability of $18 000 

c. Bridge should recognize a deferred tax asset of $63 000 in respect of the tax loss and deferred tax asset of $18 000 in respect of the deductible temporary differences 

d. Bridge should recognize a deferred tax asset of $63 000 in respect of the tax loss and deferred tax liability of $18 000 in respect of the deductible temporary differences

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The detailed answer for the above question is provided below Answer I The correct statement ... View the full answer