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ABC Ltd has a tax loss of $2,000 which can be carried forward for five years. The estimated cumulative taxable profits for the next five
ABC Ltd has a tax loss of $2,000 which can be carried forward for five years. The estimated cumulative taxable profits for the next five years are $1,200. It is estimated that $800 of tax losses will expired unused. The tax rate is 20%.
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Calculate temporary difference, and explain whether a deferred tax liability / asset should be recognized.
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