Solution-Calculate the balance of the deferred tax asset

Calculate the balance of the deferred tax asset account

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Reference no: EM132933258

Extracts from the Statement of Financial Position for Unicorn Ltd at 30 June 20X1 showed the following assets and liabilities.

20X1

Assets

Accounts receivable 510,000
Allowance for doubtful debts (25,000)
Prepaid insurance 31,000
Plant 650,000
Accumulated depreciation (250,000)

Liabilities
Provision for long service leave 210,000

Additional information

Accumulated depreciation for tax purposes at 30 June 20X1 was $170,000.
Debts are deductible for tax purposes when they are written off.
Insurance is deductible for tax purposes when it is paid.
Long service leave is deductible for tax purposes when it is paid.
The tax rate is 30%.Required:

Problem 1: Calculate the balance of the Deferred Tax Asset account that would appear in the financial statements of the company as at 30 June 20X1, determined in accordance with the requirements of AASB 112: Income Taxes.

Reference no: EM132933258

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Calculate the balance of the deferred tax asset account

Reference no: EM132933258

Reference no: EM132933258

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