On 1 April 2015, the company rate of income tax was changed from 35% to 30%. At the previous reporting date (30 June 2014) Montgomery Limited had the following tax balances: Deferred tax assets $26 250 Deferred tax liabilities $21 000 What is the impact of the tax rate change on income tax expense? а. increase $750 decrease $875 c increase $875 decrease $750

On 1 April 2015, the company rate of income tax was changed from 35% to 30%. At the previous reporting date (30 June 2014) Montgomery Limited had the following tax balances: Deferred tax assets $26 250 Deferred tax liabilities $21 000 What is the impact of the tax rate change on income tax expense? а. increase $750 decrease $875 c increase $875 decrease $750

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 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...

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During the year ended 30 June 2015 Barry Ltd, pays quarterly tax installments as follows: $4000 on 28 October 2014 $11 000 on 28 February 2015 $12 000 on 28 April 2015 On 30 June 2015, Barry Ltd determines its total current tax liability for the year to be $33 000. The final tax installment for the year will be: Question 15Answer a. a payment of $12 000 b. a payment of $6000 c. a refund of $2000 d. a payment of $33 000
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12. During the year ended 30 June 2015 Barry Ltd, pays quarterly tax installments as follows: $4000 on 28 October 2014 $11:000 on 28 February 2015 S12: 000 on 28 Aoril 2015 On 30 June 2015, Barry Ltd determines its total current tax liability for the year to be 533 000. The final tax installment for the year will be: a.a refund of $2000 b. a pavment of $33 000 C.a pavment of $12 000 d.a pavment of $6000
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