Omega Limited has shown a provision for employee benefits balance of $6,000 under current liabilities in their balance sheet. The tax rate is 30%. The deferred tax item to be recognised by Omega Limited is:   Select one: a. Deferred tax liability of $6,00

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 11RE: Barth James Inc. has the following deferred tax assets and liabilities: 12,000 noncurrent deferred...
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Omega Limited has shown a provision for employee benefits balance of $6,000 under current liabilities in their balance sheet. The tax rate is 30%. The deferred tax item to be recognised by Omega Limited is:
 
Select one:
a. Deferred tax liability of $6,000.
b. Deferred tax asset of $1,800.
c. Deferred tax liability of $1,800.
d. Deferred tax asset of $6,000.
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