User Account

All Pages

Calculate the deferred income tax

Assignment Help Financial Accounting
Reference no: EM133206000

Question

A plant was purchased on 01 January 2020 for R600 000 and sold on 01 January 2021 for R510 000.The depreciation rate used by the accountant is 50% per annum on straight line basis. The rate of wear and tear allowed as a tax deduction is 33,3% per annum on straight line basis. 

The profit before tax is R200 000 in 2020 and 2021,according to both the accountant and tax authority, before considering the asset in any way. 

Additional information: 

- Assume that there is no other information relating to any of the affected accounts. 

- The income tax rate is 28% and there are no components of other comprehensive income. 

Required:

1. Calculate the deferred income tax using balance sheet approach.

2. Briefly discuss the differences between the two methods which are used to calculate the deferred tax.

Reference no: EM133206000

Questions Cloud

Do you think the shrm website : What are two key takeaways you have learned from this course? Reflect and discuss and How will you use the knowledge gained over this course
Management internal control report : Also, read Section 404, compare the requirements of Section 404, and respond to the discussion topic. Feel free to include additional websites for this discussi
What are the minimum employment standards per esa : What are the minimum employment standards per ESA and What are the benefits of an employer policy manual
What is the no-arbitrage forward price for delivery : Suppose you are a market-maker in SUC index forward contracts. The SUC index spot price is 1100, the risk-free rate is 5%, and the dividend yield on the index i
Calculate the deferred income tax : A plant was purchased on 01 January 2020 for R600 000 and sold on 01 January 2021 for R510 000.The depreciation rate used by the accountant is 50% per annum on
Discuss the various methods of job analysis : What would be the steps in the recruitment and selection process that you would use. Explain each step. Would the steps be the same for each position?
How distribution of u.s. religious groups been affected : People carry their religious beliefs when they migrate. How has this distribution of U.S. religious groups been affected by these changes?
Indigenous Americans to the end of Civil War : San Diego State University-When thinking about the course of history in this class from European contact with Indigenous Americans to the end of the Civil War,
Personal advantage or the advantage of third parties : The principle of confidentiality imposes an obligation on professional accountants to refrain from disclosing outside the firm or employing organization confide

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd