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What is the ending balance of the Deferred Tax Liability

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Reference no: EM132657478

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

Accounting profit before tax was 700 000.

A building was purchased on 1 July 2015 for $600 000. It is depreciated at 10% 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, 9 000; closing balance, 20 000. During the period, 6 000 bad debt were written-off.

Provision for long service leave: opening balance, 40 000; closing balance, 30 000; Long-service-leave expense: 20 000.

Company tax rate is 30%

What is the ending balance of the Deferred Tax Liability account for the year ended 30 June 2018?

A) 66,000

B) 81,000

C) None of the others

D) 15,000

Reference no: EM132657478

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