What is the Deferred Tax Expense for the year ended June

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Question - A Ltd reported the following information for the year ended 30 June 2018:

Accounting profit before tax was 200 000.

A building was purchased on 1 July 2015 for $2 600 000. It is depreciated at 20% straight-line with zero residual value for accounting purpose and 25% straight-line with zero residual value for tax purposes.

Accounts receivable (gross): opening balance, 200 000; closing balance, 400 000. The allowance for doubtful debts: opening balance, 6 000; closing balance, 12 000. During the period, 5 000 bad debt were written-off.

Provision for long service leave: opening balance, 80 000; closing balance, 120 000; Long-service-leave expense: 60 000.

Company tax rate is 30%

What is the Deferred Tax Expense for the year ended 30 June 2018?

A) 25 200 increase

B) 39 000 increase

C) 77 400 increase

D) 52 200 decrease

Reference no: EM132657483

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