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Problem 1: The following information was extracted from the financial records of Drift Ltd: equipment purchased on 1 January 2019 for $300,000 (accounting depreciation 10% straight line; tax depreciation 15% straight line). If the company tax rate is 30%, the deferred tax item that will be recorded by Drift Ltd at 30 June 2021 is:
Select one:
a. CR Deferred tax liability $11,250
b. DR Deferred tax asset $11,250
c. CR Deferred tax liability $4,500
d. DR Deferred tax asset $4,500
Financial Statement Analysis and Preparation
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