What is the tax effect adjustment on June

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Reference no: EM133038998

Questions - Prepare income tax adjustment for the following items

1) T Limited accrued $10,000 for warranty expense in the year ended 30 June 2021. This item will not be tax deductible until it is paid. If the company tax rate is 30%. What is the tax effect adjustment on 30 June 2021?

2) B Limited had the following deferred tax balances at reporting date:

deferred tax assets $10,000

deferred tax liabilities $25,000

Effective from the first day of the next financial period, the company rate of income tax was increased from 30% to 25%. What is the tax effect adjustment entry to recognise the impact of the tax rate change?

3) The following information was extracted from the financial records of ABC Limited: equipment purchased on 1 July 2020 for $100 000 (accounting depreciation 10% straight line; tax depreciation 20% straight line). If the company tax rate is 30%, what is the deferred tax adjustment entry that will be recorded by ABC Limited at 30 June 2021?

Reference no: EM133038998

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