Question 5 (11 marks) Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes (3 marks) ANSWER a) Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value Assume that the only temporary difference for tax effect accounting purposes relates to the depreciation of the newly acquired equipment For tax purposes it can be fully depreciated over two years The tax rate is assumed to be 30 per cent Required SHOW YOUR WORKINGS Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability (4 marks) ANSWER i) What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022 (4 marks) ANSWER ii) Question 5 (11 marks) Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes (3 marks) ANSWER a) Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value Assume that the only temporary difference for tax effect accounting purposes relates to the depreciation of the newly acquired equipment For tax purposes it can be fully depreciated over two years The tax rate is assumed to be 30 per cent Required SHOW YOUR WORKINGS Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability (4 marks) ANSWER i) What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022 (4 marks) ANSWER ii) Question 5 (11 marks) Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes (3 marks) ANSWER a) Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value Assume that the only temporary difference for tax effect accounting purposes relates to the depreciation of the newly acquired equipment For tax purposes it can be fully depreciated over two years The tax rate is assumed to be 30 per cent Required SHOW YOUR WORKINGS Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability (4 marks) ANSWER i) What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022 (4 marks) ANSWER ii) Question 5 (11 marks) Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes (3 marks) ANSWER a) Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value Assume that the only temporary difference for tax effect accounting purposes relates to the depreciation of the newly acquired equipment For tax purposes it can be fully depreciated over two years The tax rate is assumed to be 30 per cent Required SHOW YOUR WORKINGS Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability (4 marks) ANSWER i) What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022 (4 marks) ANSWER ii) Question 5 (11 marks) Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes (3 marks) ANSWER a) Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value Assume that the only temporary difference for tax effect accounting purposes relates to the depreciation of the newly acquired equipment For tax purposes it can be fully depreciated over two years The tax rate is assumed to be 30 per cent Required SHOW YOUR WORKINGS Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability (4 marks) ANSWER i) What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022 (4 marks) ANSWER ii) Question 5 (11 marks) Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes (3 marks) ANSWER a) Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value Assume that the only temporary difference for tax effect accounting purposes relates to the depreciation of the newly acquired equipment For tax purposes it can be fully depreciated over two years The tax rate is assumed to be 30 per cent Required SHOW YOUR WORKINGS Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability (4 marks) ANSWER i) What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022 (4 marks) ANSWER ii) Question 5 (11 marks) Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes (3 marks) ANSWER a) Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value Assume that the only temporary difference for tax effect accounting purposes relates to the depreciation of the newly acquired equipment For tax purposes it can be fully depreciated over two years The tax rate is assumed to be 30 per cent Required SHOW YOUR WORKINGS Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability (4 marks) ANSWER i) What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022 (4 marks) ANSWER ii) Question 5 (11 marks) Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes (3 marks) ANSWER a) Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value Assume that the only temporary difference for tax effect accounting purposes relates to the depreciation of the newly acquired equipment For tax purposes it can be fully depreciated over two years The tax rate is assumed to be 30 per cent Required SHOW YOUR WORKINGS Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability (4 marks) ANSWER i) What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022 (4 marks) ANSWER ii) Question 5 (11 marks) Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes (3 marks) ANSWER a) Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value Assume that the only temporary difference for tax effect accounting purposes relates to the depreciation of the newly acquired equipment For tax purposes it can be fully depreciated over two years The tax rate is assumed to be 30 per cent Required SHOW YOUR WORKINGS Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability (4 marks) ANSWER i) What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022 (4 marks) ANSWER ii) Question 5 (11 marks) Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes (3 marks) ANSWER a) Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value Assume that the only temporary difference for tax effect accounting purposes relates to the depreciation of the newly acquired equipment For tax purposes it can be fully depreciated over two years The tax rate is assumed to be 30 per cent Required SHOW YOUR WORKINGS Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability (4 marks) ANSWER i) What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022 (4 marks) ANSWER ii) Question 5 (11 marks) Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes (3 marks) ANSWER a) Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value Assume that the only temporary difference for tax effect accounting purposes relates to the depreciation of the newly acquired equipment For tax purposes it can be fully depreciated over two years The tax rate is assumed to be 30 per cent Required SHOW YOUR WORKINGS Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability (4 marks) ANSWER i) What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022 (4 marks) ANSWER ii) Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value Assume that the only temporary difference for tax effect accounting purposes relates to the depreciation of the newly acquired equipment For tax purposes it can be fully depreciated over two years The tax rate is assumed to be 30 per cent Required SHOW YOUR WORKINGS Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022

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Question 5 (11 marks) Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting

Question 5 (11 marks)

Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes. (3 marks)

ANSWER a):

Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value. Assume that the only temporary difference for tax-effect accounting purposes relates to the depreciation of the newly acquired equipment. For tax purposes it can be fully depreciated over two years. The tax rate is assumed to be 30 per cent.

Required: SHOW YOUR WORKINGS

Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability? (4 marks)

ANSWER i):

What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022? (4 marks)

ANSWER ii):

Question 5 (11 marks)

Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes. (3 marks)

ANSWER a):

Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value. Assume that the only temporary difference for tax-effect accounting purposes relates to the depreciation of the newly acquired equipment. For tax purposes it can be fully depreciated over two years. The tax rate is assumed to be 30 per cent.

Required: SHOW YOUR WORKINGS

Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability? (4 marks)

ANSWER i):

What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022? (4 marks)

ANSWER ii):

Question 5 (11 marks)

Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes. (3 marks)

ANSWER a):

Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value. Assume that the only temporary difference for tax-effect accounting purposes relates to the depreciation of the newly acquired equipment. For tax purposes it can be fully depreciated over two years. The tax rate is assumed to be 30 per cent.

Required: SHOW YOUR WORKINGS

Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability? (4 marks)

ANSWER i):

What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022? (4 marks)

ANSWER ii):

Question 5 (11 marks)

Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes. (3 marks)

ANSWER a):

Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value. Assume that the only temporary difference for tax-effect accounting purposes relates to the depreciation of the newly acquired equipment. For tax purposes it can be fully depreciated over two years. The tax rate is assumed to be 30 per cent.

Required: SHOW YOUR WORKINGS

Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability? (4 marks)

ANSWER i):

What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022? (4 marks)

ANSWER ii):

Question 5 (11 marks)

Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes. (3 marks)

ANSWER a):

Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value. Assume that the only temporary difference for tax-effect accounting purposes relates to the depreciation of the newly acquired equipment. For tax purposes it can be fully depreciated over two years. The tax rate is assumed to be 30 per cent.

Required: SHOW YOUR WORKINGS

Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability? (4 marks)

ANSWER i):

What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022? (4 marks)

ANSWER ii):

Question 5 (11 marks)

Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes. (3 marks)

ANSWER a):

Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value. Assume that the only temporary difference for tax-effect accounting purposes relates to the depreciation of the newly acquired equipment. For tax purposes it can be fully depreciated over two years. The tax rate is assumed to be 30 per cent.

Required: SHOW YOUR WORKINGS

Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability? (4 marks)

ANSWER i):

What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022? (4 marks)

ANSWER ii):

Question 5 (11 marks)

Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes. (3 marks)

ANSWER a):

Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value. Assume that the only temporary difference for tax-effect accounting purposes relates to the depreciation of the newly acquired equipment. For tax purposes it can be fully depreciated over two years. The tax rate is assumed to be 30 per cent.

Required: SHOW YOUR WORKINGS

Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability? (4 marks)

ANSWER i):

What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022? (4 marks)

ANSWER ii):

Question 5 (11 marks)

Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes. (3 marks)

ANSWER a):

Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value. Assume that the only temporary difference for tax-effect accounting purposes relates to the depreciation of the newly acquired equipment. For tax purposes it can be fully depreciated over two years. The tax rate is assumed to be 30 per cent.

Required: SHOW YOUR WORKINGS

Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability? (4 marks)

ANSWER i):

What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022? (4 marks)

ANSWER ii):

Question 5 (11 marks)

Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes. (3 marks)

ANSWER a):

Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value. Assume that the only temporary difference for tax-effect accounting purposes relates to the depreciation of the newly acquired equipment. For tax purposes it can be fully depreciated over two years. The tax rate is assumed to be 30 per cent.

Required: SHOW YOUR WORKINGS

Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability? (4 marks)

ANSWER i):

What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022? (4 marks)

ANSWER ii):

Question 5 (11 marks)

Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes. (3 marks)

ANSWER a):

Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value. Assume that the only temporary difference for tax-effect accounting purposes relates to the depreciation of the newly acquired equipment. For tax purposes it can be fully depreciated over two years. The tax rate is assumed to be 30 per cent.

Required: SHOW YOUR WORKINGS

Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability? (4 marks)

ANSWER i):

What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022? (4 marks)

ANSWER ii):

Question 5 (11 marks)

Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes. (3 marks)

ANSWER a):

Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value. Assume that the only temporary difference for tax-effect accounting purposes relates to the depreciation of the newly acquired equipment. For tax purposes it can be fully depreciated over two years. The tax rate is assumed to be 30 per cent.

Required: SHOW YOUR WORKINGS

Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability? (4 marks)

ANSWER i):

What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022? (4 marks)

ANSWER ii):

Provide two examples of expenditures that are typically not allowable for tax deductions but are recognised as an expense for accounting purposes. Tafty Ltd purchased an equipment on 1 July 2019 for $500 000, and its useful life to be five years, with no residual value. Assume that the only temporary difference for tax-effect accounting purposes relates to the depreciation of the newly acquired equipment. For tax purposes it can be fully depreciated over two years. The tax rate is assumed to be 30 per cent.Required: SHOW YOUR WORKINGS. Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred tax liability? What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2022?