Question
A company has interest revenue received in advance with a carrying amount of $250,000, which was taxed on a cash basis. It also has a
A company has interest revenue received in advance with a carrying amount of $250,000, which was taxed on a cash basis. It also has a loan payable with a carrying amount of $4000,000.
a) Assuming that the tax rate is 30 per cent, what is the tax base and the amount of the temporary difference?
b) Does this give rise to a deferred tax asset or a deferred tax liability and what is the amount of the deferred tax asset/liability?
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Accounting Principles
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
7th Canadian Edition Volume 1
1119048508, 978-1119048503
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