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Time A company commenced business on 1 July 2022. On 30 June 2023, an extract of the statement of financial position prepared for internal purposes,
Time A company commenced business on 1 July 2022. On 30 June 2023, an extract of the statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information: Assets Liabilities Cash $20 000 Accounts payable $50 000 Inventories 60 000 Provision for annual leave 8 000 Plant 200 000 Accumulated depreciation (20 000) Additional information: The plant was acquired on 1 July 2022. Depreciation for accounting purposes was 10% (straight-line method), while 20% (straight-line) was used for tax purposes. The tax rate is 30%. The deferred tax asset is (hint use tax worksheet): O a. $2 400 O b. $6 000 O c. $8 000 O d. $20 000 O e. None of the above Clear my choice
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