The accumulated tax depreciation for machines at 30 June 2021 was $50 000. The tax rate is 30%. Required Prepare a deferred tax worksheet to identify the temporary differences arising in respect of the assets and liabilities in the statement of financial position, and to calculate the balance of the deferred tax liability and deferred tax asset accounts at 30 June 2021. Assume the opening balances of the deferred tax accounts were $2,000 for Deferred Tax Assets and $1,500 for Deferred Tax Liability. Prepare the journal entry to adjust the deferred tax account.
The accumulated tax depreciation for machines at 30 June 2021 was $50 000. The tax rate is 30%. Required Prepare a deferred tax worksheet to identify the temporary differences arising in respect of the assets and liabilities in the statement of financial position, and to calculate the balance of the deferred tax liability and deferred tax asset accounts at 30 June 2021. Assume the opening balances of the deferred tax accounts were $2,000 for Deferred Tax Assets and $1,500 for Deferred Tax Liability. Prepare the journal entry to adjust the deferred tax account.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.1DC: Reading 3M Companys Balance Sheet: Accounts Receivable The following current asset appears on the...
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The following information was extracted from the records of Gin Gin Ltd for the year ended 30 June 2021.
Additional information
- The
accumulated tax depreciation for machines at 30 June 2021 was $50 000. - The tax rate is 30%.
Required
- Prepare a
deferred tax worksheet to identify the temporary differences arising in respect of the assets and liabilities in thestatement of financial position , and to calculate the balance of thedeferred tax liability and deferred tax asset accounts at 30 June 2021. Assume the opening balances of the deferred tax accounts were $2,000 forDeferred Tax Assets and $1,500 for Deferred Tax Liability. - Prepare the
journal entry to adjust the deferred tax account.
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