Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q6 Kamara Ltd purchased an item of plant at a cost of 15 million on 1 January 2019. Kamara charged depreciation at 25% per annum
Q6 Kamara Ltd purchased an item of plant at a cost of 15 million on 1 January 2019. Kamara charged depreciation at 25% per annum (straight line) and received capital (taxation) allowances of 40% (reducing balance) in respect of the purchase. This was the only temporary difference in respect of the years to 31 December 2020 and 2021. The tax rate is 20%. What is the balance of Deferred Tax for Kamara for the year ended 31 December 2021? 450,000 credit 420,000 debit 420,000 credit 102,000 credit ABCD
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