GYV Ltd has the following deferred tax balances as at 30 June 2019. Deferred tax asset $9 00 000 Deferred tax liability $7 00 000 The above balances were calculated when the tax rate, was 20 per cent. On 1 December 2019 the government raises the corporate tax rate to 25 per cent. Required: Provide the journal entries to adjust the carry-forward balances of the deferred tax asset and deferred tax liability.
GYV Ltd has the following deferred tax balances as at 30 June 2019. Deferred tax asset $9 00 000 Deferred tax liability $7 00 000 The above balances were calculated when the tax rate, was 20 per cent. On 1 December 2019 the government raises the corporate tax rate to 25 per cent. Required: Provide the journal entries to adjust the carry-forward balances of the deferred tax asset and deferred tax liability.
Chapter26: Tax Practice And Ethics
Section: Chapter Questions
Problem 32P
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B. GYV Ltd has the following
The above balances were calculated when the tax rate, was 20 per cent. On 1 December 2019 the government raises the corporate tax rate to 25 per cent.
Required:
Provide the
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