Solution-Calculate the amount of deferred tax charged

Calculate the amount of deferred tax charged

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Reference no: EM132833320

Question - The carrying amount of assets and liabilities and their corresponding tax bases as at 31 December 2018 and 3 December 2019 of Preve Bhd are as follows:

Year ended 31 December 2018	Carrying Amount RM'000	Tax Base RM'000
Property, Plant and Equipment	80,000	50,000
Trade receivable	56,000	56,000
Allowance for doubtful debt	(8,000)	0
Provision for retirement Benefits	(16,000)	0
	112,000	106,000

Year ended 31 December 2019	Carrying Amount RM'000	Tax Base RM'000
Property, Plant and Equipment	90,000	44,000
Trade receivable	62,000	62,000
Allowance for doubtful debt	(10,000)	0
Provision for retirement Benefits	(18,000)	0
	124,000	106,000

Additional information:

a) Income tax for the year ended31 December 2018 and 3 December 2019 are 26% and 25% respectively.

b) There is no deferred tax brought forward for Preve Bhd on 1 January 2018.

Required - Calculate the amount of deferred tax charged in the statement of profit or loss and other comprehensive income?

Reference no: EM132833320

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Calculate the amount of deferred tax charged

Reference no: EM132833320

Reference no: EM132833320

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