On 1 July 2022, Entity A invested $12,000,000 in new production machinery. The useful life is...

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On 1 July 2022, Entity A invested $12,000,000 in new production machinery. The useful life is 5 years. The straight-line depreciation method is adopted. Under Taxation, the machinery allows a 60% depreciation allowance in the year of purchase and 20% for the remaining years by the reducing balance method. The end of the reporting period is 30 June 2023. Tax Rate = 30% REQUIRED: Measure the amounts of Tax Base, Temporary Difference, and Deferred Tax. Identify the nature of Temporary Difference, and Deferred Tax respectively at the end of the reporting period. ANSWER: Tax Base: $ Temporary Difference: $ (T or D or N) Deferred Tax: $ For Blank 1 Taxable or Deductible or None Liability or Asset or None (L or A or N) On 1 July 2022, Entity A invested $12,000,000 in new production machinery. The useful life is 5 years. The straight-line depreciation method is adopted. Under Taxation, the machinery allows a 60% depreciation allowance in the year of purchase and 20% for the remaining years by the reducing balance method. The end of the reporting period is 30 June 2023. Tax Rate = 30% REQUIRED: Measure the amounts of Tax Base, Temporary Difference, and Deferred Tax. Identify the nature of Temporary Difference, and Deferred Tax respectively at the end of the reporting period. ANSWER: Tax Base: $ Temporary Difference: $ (T or D or N) Deferred Tax: $ For Blank 1 Taxable or Deductible or None Liability or Asset or None (L or A or N)

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The question refers to the accounting for the tax base temporary differences and deferred tax for a piece of machinery Based on the information presen... View the full answer