Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Swiftsure Ltd has carried forward a deferred tax liability of 170000, arising from differences between carrying amount and tax bases of the company's assets. On

Swiftsure Ltd has carried forward a deferred tax liability of 170000, arising from differences between carrying amount and tax bases of the company's assets. On 30 June 2013, the carrying amounts and tax bases of the company's assets were as follows:

Assets Carrying amount Tax base

A $142000 $108000

B $541000 $340000

C $820000 $610000

D $86000 $40000

The current income tax expense for the year ended 30 June 2013 is $8400000 and tax rate is 30%.

Required: (a) Prepare general journal entries on 30 June 2013 to record company's income tax expense. (b) How would your answer differ if the balance of the deferred tax liability carried forward was $120000?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computer Accounting

Authors: Donna Kay

14th Edition

007762453X, 9780077624538

More Books

Students also viewed these Accounting questions

Question

5. Give some examples of hidden knowledge.

Answered: 1 week ago