The following information relates to depreciation charge and capital allowance claimed over five accounting periods. The additional
Question:
The following information relates to depreciation charge and capital allowance claimed over five accounting periods. The additional information on the carrying amount and tax base (tax written down value of the asset) is as follows:
Year-end 31.12 | Tax rate % | Depreciation charge RM’000 | Capital allowance RM’000 | Carrying amount (NBV) | Tax base (tax written down value) |
2001 | 40 | 600 | 1,200 | 5,000 | 4,400 |
2002 | 45 | 600 | 1,000 | 5,600 | 4,600 |
2003 | 42 | 1,000 | 500 | 6,000 | 5,500 |
2004 | 34 | 700 | 950 | 7,200 | 6,450 |
2005 | 34 | 600 | 440 | 6,300 | 5,710 |
Required:
Show the accounting treatment for deferred tax for the five years using:
Balance sheet (financial position) liability method
Income statement (P&L) liability method
Prepare deferred tax account for five years
Prepare an extract of Profit and Loss
Prepare an extract of financial position
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng