Question
Help me on this question PQ, an entity operating in Country X purchased plant for $600,000 on 1 January 2012. PQ depreciates its plant using
Help me on this question
PQ, an entity operating in Country X purchased plant for $600,000 on 1 January 2012.
PQ depreciates its plant using the straight line method over 15 years, assuming a residual
value of 10% of original cost.
PQ claims all available tax depreciation allowances.
On 1 January 2013 PQ revalued the plant and increased its carrying value by $50,000. The
assets useful life was not affected.
Assume there were no other temporary differences in the period.
(f)
(Total for Section B = 30 marks)
End of Section B
Section C starts on the next page
TURN OVER
Required:
(i) Calculate the amount of PQs deferred tax balance at 31 December 2013 in
accordance with IAS 12 Income Taxes.
(ii) Calculate the change in PQs deferred tax balance for the year ended 31 December
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