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Silver Bullet Limited has a product warranty liability amounting to $12 000. The product warranty costs are not tax deductible until paid out to
Silver Bullet Limited has a product warranty liability amounting to $12 000. The product warranty costs are not tax deductible until paid out to customers. The company tax rate is 30%. The company has a: O a. deductible temporary difference of $12 000. O b. future deductible amount of $0. Oc. taxable temporary difference of $12.000. O d. tax base of $12 000. F 5 Sydney Limited accrued $20 000 for employees' long service leave in the year ended 30 June 2015. This item will not be tax ut of deductible until it is paid in approximately 10 years' time. If the company tax rate is 30%, Sydney Limited must record which of the following tax effects as a balance date adjustment? O a. Dr Deferred tax asset $6000 O b. Cr Deferred tax liability $6000 Oc. Dr Deferred tax liability $6000 O d. Cr Deferred tax asset $6000
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