Make deferred tax worksheet

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The following information was extracted from the records of Grand Ltd as at 30 June 2021.

                                 Carrying amount         Tax base

Asset (liability)

Accounts receivable       $150 000                    $175 000

Motor vehicles               165 000                          125 000

Provision for warranty              (12 000)                       0

The depreciation rates for accounting and taxation are 15% p.a. and 25% p.a. respectively. Warranty costs are deductible when paid. An allowance for doubtful debts of $25 000 has been raised against accounts receivable for accounting purposes, but such debts are deductible only when written off as non-collectible.

Required

Problem 1: Prepare deferred tax worksheet and calculate the temporary differences for Grand Ltd as at 30 June 2021. Justify your classification of each difference as either a deductible temporary difference or a taxable temporary difference.

Reference no: EM132711744

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