Tax deduction immediately upon payment

Assignment Help Financial Accounting

Reference no: EM131219142

According to AASB 112, the prepayment of rent of $2,000 that is claimed as a tax deduction immediately upon payment (assuming an income tax rate of 30%) will give rise to:

A a Deferred Tax Liability of $600

B a Deferred Tax Asset of $600

C a Deferred Tax Liability of $600 and a credit to Income Tax Payable of $600

D neither a Deferred Tax Liability nor a Deferred Tax Asset

Reference no: EM131219142

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