Reference no: EM132672271

The following information was extracted from the financial records of Trek Limited:

Equipment purchased on 1 July 2019 for $50,000 (accounting depreciation 10% straight line tax depreciation 20% straight line).

Problem 1: If the company tax rate is 30%, the deferred tax item that will be recorded by Polly Limited at 30 June 2020 is:

Select one:

Option 1: credit Deferred tax liability $1,500

Option 2: credit Deferred tax asset $1,500

Option 3: debit Deferred tax liability $1,500

Option 4: debit Deferred tax asset $1,500