Question
1. Equipment was purchased 4 years ago for $600,000. Depreciation is calculated 15% and 25% straight-line for accounting purposes and tax purposes respectively. Calculate the
1. Equipment was purchased 4 years ago for $600,000. Depreciation is calculated 15% and 25% straight-line for accounting purposes and tax purposes respectively. Calculate the Carrying Amount , Tax Base and TTD/DTD for this situation.
2. With reference to your calculations in Question 1, explain why there is a difference between the Carrying Amount and the Tax Base? What effect does the TTD/DTD have on next year's income tax payable?
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Advanced Digital Auditing Theory And Practice Of Auditing Complex Information Systems And Technologies
Authors: Egon Berghout, Rob Fijneman, Lennard Hendriks, Mona De Boer, Bert-Jan Butijn
1st Edition
3031110889, 978-3031110887
