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On 1/1/2016 the Arab company bought equipment for 100,000 dinars, on 1/1/2019 the tax basis for equipment was 10,000 dinars, while the book value was
On 1/1/2016 the Arab company bought equipment for 100,000 dinars, on 1/1/2019 the tax basis for equipment was 10,000 dinars, while the book value was 55,000 dinars, the accounting wind swallowed for the year 2019 and after deducting the equipment depreciation expense 140,000 dinars. There were no differences between accounting profit and taxable income other than equipment depreciation. The company is subject to an income tax rate of 25%. What is the deferred tax balance that will appear in the company's balance sheet on December 31, 2020?
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