Q1) A company has a depreciable non-current asset that cost $300 and has a carrying amount of $200. For tax purpose, accumulate depreciation amounts to $180.
a) Assuming that the tax rate is 30 per cent, what is the amount of the temporary difference?
b) Does this give rise to a deferred tax asset or a deferred tax liablility, and what is the amount of deferred tax asset/liablility?
Q2) A company has prepaid rent with a carrying value of $400 000. A tax deduction was obtained at the time the rent was paid.
a) Assuming that the tax rate is 30 per cent, what is the amount of the temporary difference?
b) Does this give rise to a deferred tax asset or a deferred tax liablility, and what is the amount of deferred tax asset/liablility?
Q3) A company has a liability for employee benefits (relating to long-service leave) with a carrying value of $500 000, which will be deductible when the amounts are actually paid. The company also has accrued wages with a carrying value of $300 000, which have already been claimed as a deduction for tax purposes.
a) Assuming that the tax rate is 30 per cent, what is the amount of the temporary difference?
b) Does this give rise to a deferred tax asset or a deferred tax liablility, and what is the amount of deferred tax asset/liablility?