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QUESTION 1 (4 MARKS) Strongarm Ltd has the following tax balances as at 30 June 2018: 91,000 beferred Tax Asset 34,000 Deferred Tax Liability The
QUESTION 1 (4 MARKS) Strongarm Ltd has the following tax balances as at 30 June 2018: 91,000 beferred Tax Asset 34,000 Deferred Tax Liability The botonces were calculated when the tax rate was 30%. On 30 September 2018, the government announced o change to the company tax rate to 26%, effective immediately. Below is the journal entry to adjust the carry-forward balances of the deferred tax asset and deferred tax liability. Enter the account balance for ITE (as shown as xxx) below, Dr. DTL Dr. ITE Cr. DTA
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