Question
1. A taxable temporary difference leads to the payment of: Select one: a. less tax in the future and gives rise to a deferred tax
1.
A taxable temporary difference leads to the payment of:
Select one:
a. less tax in the future and gives rise to a deferred tax asset.
b. more tax in the future and gives rise to a deferred tax liability.
c. more tax in the future and gives rise to a deferred tax asset.
d. less tax in the future and gives rise to a deferred tax liability.
2.
Alpha Limited has an asset with a carrying value of $50,000. The tax base of this asset is $70,000. The tax rate is 30%. The deferred tax item to be recognised by Alpha Limited is:
Select one:
a. Deferred tax liability of $10,000.
b. Deferred tax asset of $6,000.
c. Deferred tax asset of $10,000.
d. Deferred tax liability of $6,000.
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