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Fill in the blanks by dragging the correct options provided below. Owl Ltd has taxable temporary differences of $40,000 at the year-end and a tax
Fill in the blanks by dragging the correct options provided below. Owl Ltd has taxable temporary differences of $40,000 at the year-end and a tax loss of $65,000. The tax rate is 30%. It is not probable that sufficient future taxable profits will be available against which the tax loss can be utilized. Owl Ltd, therefore, offsets the deferred tax liability of A , with B of the deferred tax asset. The entity, leaving a residual unused deferred tax asset ofD therefore, recognizes a Because it is not probable that there will be sufficient future taxable profits, recognized. Answer A Answer B Answer C Answer D Answer E $0 $0 deferred tax amount of $nil $0 no deferred tax $12,000 $12,000 I deferred tax asset of $7,500 $7,500 a net deferred tax asset of $7,500 $19,500 $19,500 deferred tax asset of $19,500 $12,000 a net deferred tax asset of $19,500 $25,000 $25,000 deferred tax liability of $12,000 $19,500 a net deferred tax liability of $12,000 Submit
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