On 1 January 20x6, a company has a deferred tax liability of R50 000, stemming from a
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Question:
On 1 January 20x6, a company has a deferred tax liability of R50 000, stemming from a temporary difference in the carrying value and tax base of its fixed assets. The following information is available concerning these fixed assets at the company’s year-end date of 31 December 20x6:
-carrying value: R10 000 000;
-Tax base: R9 000 000;
If the company is subject to a 25% corporation tax, calculate deferred tax movement which has occurred based on these fixed assets in the 2006 financial year.
Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
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