According to AASB 112, the prepayment of rent of $2,000 that is claimed as a tax deduction immediately upon payment (assuming an income tax rate of 30%) will give rise to: A. a Deferred Tax Liability of $600 B. a Deferred Tax Asset of $600 C. a Deferred Tax Liability of $600 and a credit to Income Tax Payable of $600 D. neither a Deferred Tax Liability nor a Deferred Tax Asset
According to AASB 112, the prepayment of rent of $2,000 that is claimed as a tax deduction immediately upon payment (assuming an income tax rate of 30%) will give rise to: A. a Deferred Tax Liability of $600 B. a Deferred Tax Asset of $600 C. a Deferred Tax Liability of $600 and a credit to Income Tax Payable of $600 D. neither a Deferred Tax Liability nor a Deferred Tax Asset
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 14P
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i dont know how to solve please help me. it is general account subject question.

Transcribed Image Text:According to AASB 112, the prepayment of rent of $2,000 that is claimed
as a tax deduction immediately upon payment (assuming an income tax
rate of 30%) will give rise to:
A. a Deferred Tax Liability of $600
B. a Deferred Tax Asset of $600
C. a Deferred Tax Liability of $600 and a credit to Income Tax Payable of
$600
D. neither a Deferred Tax Liability nor a Deferred Tax Asset
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