FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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At 30 June 2019, Beta Ltd had the following
Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included the following items:
For
Tax depreciation – plant $8,000
Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies.
Required: a) Determine the taxable income and income tax payable for the year to 30 June 2020.
b.Determine by what amount the balances of the deferred liability and deferred tax asset will increase or decrease for the year to 30 June 2020 because of depreciation, doubtful debts and long-service leave.
c.Prepare the necessary
What are the balances of the deferred tax liability and deferred tax asset at 30 June 2020?
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