Question
A company commenced business on 1 July 2022. On 30 June 2023, an extract of the statement of financial position prepared for internal purposes, but
A company commenced business on 1 July 2022. On 30 June 2023, an extract of the statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information:
Assets
Cash $20 000
Accounts payable $50 000
Inventories $60 000
Liabilities
Provision for annual leave $8 000
Plant $200 000
Accumulated depreciation $(20 000)
Additional information:The plant was acquired on 1 July 2022. Depreciation for accounting purposes was 10% (straight-line method), while 20% (straight-line) was used for tax purposes.The tax rate is 30%.
Using the following worksheet, determine the deferred tax asset and deferred tax liability. The deferred tax liability is:
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