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A company acquired an asset on 1 July 2007 for $300 000. Depreciation for accounting purposes was 10% (straight-line method), while 15% (straight-line method) was
A company acquired an asset on 1 July 2007 for $300 000. Depreciation for accounting purposes was 10% (straight-line method), while 15% (straight-line method) was used for tax purposes. The tax rate is 30%. The deferred tax asset and/or deferred tax liability at 30 June 2008 would be:
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Deferred tax asset $4 500
Deferred tax asset $15 000
Deferred tax liability $15 000.
Deferred tax liability $4 500
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