Calculate the deferred tax expense for Jaya for the year

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Reference no: EM132885082

Question -

1. On 31 December 2020, Jaya revalued land and some of the plant. Fair value of the land and plant were RM5 million and RM30 million respectively, more than its carrying amount.

2. Jaya provides for general provision for doubtful debts of 10%. Tax rule recognises bad debts only.

3. Jaya raised a loan during the year and recorded it net of transaction costs. The transaction costs are allowable for tax in the year in which the loan is raised.

4. Income tax had changed from 30% to 25%.

5. Real property gain tax is 5%.

Required -

a) Calculate the deferred tax expense for Jaya for the year.

b) Prepare the extract of Statement of Financial Position for the year ended 31 December 2020.

Reference no: EM132885082

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