Question
On 1 April 2020, the company rate of income tax changed from 30% to 32%. At the previous reporting date (30 June 2019) Langer Limited
On 1 April 2020, the company rate of income tax changed from 30% to 32%. At the previous reporting date (30 June 2019) Langer Limited had the following tax balances:
Deferred tax assets $8,250
Deferred tax liabilities $12,000
What is the impact of the tax rate change on income tax expense?
| Increase $234 | ||
| Decrease $250 | ||
| Decrease $234 | ||
| Increase $250 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial accounting
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
1st edition
