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Measure the amounts of Tax Base, Temporary Difference, and Deferred Tax. Identify the nature of Temporary Difference, and Deferred Tax respectively at the end of the reporting period.

Measure the amounts of Tax Base, Temporary Difference, and Deferred Tax. Identify the nature of Temporary Difference, and Deferred Tax respectively at the end of the reporting period.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Entity A owns a machine with an initial cost of $100 on 1 April 2022. On 31 March 2023, the carrying amount was $90 and revalued to $150. A depreciation of $60 is allowed to claim for the tax deduction this year. The end of the reporting period is 31 March 2023. Tax Rate = 30% REQUIRED: Measure the amounts of Tax Base, Temporary Difference, and Deferred Tax. Identify the nature of Temporary Difference, and Deferred Tax respectively at the end of the reporting period. ANSWER: Tax Base: $ Temporary Difference: $ Deferred Tax: $ (L or A or or N) (T or D or N) Taxable or Deductible or None Liability or Asset or None
Transcribed Image Text:Entity A owns a machine with an initial cost of $100 on 1 April 2022. On 31 March 2023, the carrying amount was $90 and revalued to $150. A depreciation of $60 is allowed to claim for the tax deduction this year. The end of the reporting period is 31 March 2023. Tax Rate = 30% REQUIRED: Measure the amounts of Tax Base, Temporary Difference, and Deferred Tax. Identify the nature of Temporary Difference, and Deferred Tax respectively at the end of the reporting period. ANSWER: Tax Base: $ Temporary Difference: $ Deferred Tax: $ (L or A or or N) (T or D or N) Taxable or Deductible or None Liability or Asset or None
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