On 1 November 2018, the company rate of income tax was changed from 35% to 30%....

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On 1 November 2018, the company rate of income tax was changed from 35% to 30%. At the previous reporting date (30 June 2018) Montgomery Limited had the following tax balances: Deferred tax assets $33 500 Deferred tax liabilities $18 000 What is the impact of the tax rate change on income tax expense? On 1 November 2018, the company rate of income tax was changed from 35% to 30%. At the previous reporting date (30 June 2018) Montgomery Limited had the following tax balances: Deferred tax assets $33 500 Deferred tax liabilities $18 000 What is the impact of the tax rate change on income tax expense?

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Calculation of Impact of Tax rate change on Income Tax Expenses New DTA wil... View the full answer