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On 1 January 20x6, a company has a deferred tax liability of R50 000, stemming from a temporary difference in the carrying value and tax

On 1 January 20x6, a company has a deferred tax liability of R50 000, stemming from a temporary difference in the carrying value and tax base of its fixed assets. The following information is available concerning these fixed assets at the companys year end date of 31 December 20x6:

carrying value: R10 000 000;

Tax base: R9 000 000;

If the company is subject to a 25% corporation tax, calculate deferred tax movement which has occurred based on these fixed assets in the 20x6 financial year.

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