Purple Ltd purchased a depreciable asset for $900,000 on 1 July 2014.For accounting purposes, it is estimated to have a useful life of 8 years with no residual value. Fortaxation purposes, the useful life is 6 years with no residual value. The asset is depreciated on astraight-line basis for both accounting and tax purposes.Tax rate is 30%.What is the adjustment required in the deferred tax liability account for the year ended 30 June2020 and 30 June 2021 respectively in accordance with the requirements of AASB112 IncomeTaxes?$11,250; $11,250$11,250; $33,750$11,250; ($33,750)$11,250; ($11,250)

Part 2: ExplanationStep 1: Calculate the annual depreciation for accounting and tax purposes.The…

Answered: Purple Ltd purchased a depreciable…

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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