Question
In its balance sheets at June 30, the following balances were reported by Franklin Ltd (amounts in thousands): 2018 2019 Allowance for doubtful debts $400
In its balance sheets at June 30, the following balances were reported by Franklin Ltd (amounts in thousands): 2018 2019 Allowance for doubtful debts $400 $300 Provision for warranty 5200 $400 Allowance for impairment - goodwill $200 Accumulated depreciation - plant $2,500 $2,000 Goodwill impairment expense is not a tax deduction. For income tax purposes, the accumulated depreciation at June 30, 2019 was $3,000,000 (June 30, 2018 $2,600,000). For the year ended June 30, 2019 the company earned an accounting profit before tax of $4,000,000. The income tax rate is 30%. At June 30, 2019 the deferred tax asset and deferred tax liability are:
In its balance sheets at June 30, the following balances were reported by Franklin Ltd (amounts in thousands): \\( \\bigcirc30. At June 30, 2019 the deferred tax asset and deferred tax liability are: Select one: a. \\( \\$ 210,000 \\) and \\( \\$ 150,000 \\) b. \\( \\$ 180,000 \\) and \\( \\$ 180,000 \\) c. \\( \\$ 180,000 \\) and \\( \\$ 210,000 \\) d. \\( \\$ 180,000 \\) and \\( \\$ 270,000 \\) e. None of the answersStep by Step Solution
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