What the deferred tax item that will be record by drift ltd

Assignment Help Financial Accounting
Reference no: EM132858884

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

 

Reference no: EM132858884

Questions Cloud

What is statsylvania service trade balance : The country of Statsylvania has the following accounts related to other countries:US$-Billions
What the total income tax expense that kally ltd will report : What the total income tax expense that Kally Ltd will report in the Profit or Loss and Other Comprehensive Income Statement for 30 June 2020 is
What total for income tax expense that should be disclosed : What The total for income tax expense that should be disclosed on the Statement of Profit or Loss and Other Comprehensive Income is
How should Dinodyne recognize revenue from this contract : How should Dinodyne recognize revenue from this contract for the year ending on 31 December 20X1? How much is recognized income
What the deferred tax item that will be record by drift ltd : If the company tax rate is 30%, what the deferred tax item that will be recorded by Drift Ltd at 30 June 2021 is?January 2019 for $300,000
Which system should the company choose : System A costs $290,000 has a four year life and requires $85,000 in pretax annual operating costs. Which system should the company choose
Calculate the net capital gain : Mary sold both properties to a property developer on 31 December 2019 for $1,200,000 each. Calculate the Net Capital Gain
What amount that kathy ltd should record for depreciation : What the amount that Kathy Ltd should record for depreciation on 30 June 2020 is? On 27 February 2020 Kathy Ltd received specialised equipment
Discuss the difference between the two approaches : XYZ Company bought real estate properties in Boston 50 years ago for $30,000. Discuss the difference between the two approaches

Reviews

Write a Review

Financial Accounting Questions & Answers

  How do prepare journal entries for equipment at december

How do Prepare journal entries for the equipment at December 31, 20X5. The fair value of the equipment at December 31, 20X5, is estimated to be $4,600,000.

  Calculate the after-tax cash flow for the project year

Unavoidable costs = 30; Total variable costs = 50; Depreciation = $10; Tax rate = 21 percent. Calculate the after-tax cash flow for the project year 1

  Determine at what amount the land should be recorded

On January 1, 2014, Robin Wright Inc. purchased land that had an assessed value of $341,000 at the time of purchase. A $674,000, zero-interest-bearing note due January 1, 2017, was given in exchange. Determine at what amount the land should be record..

  What is Avicorp pre-tax cost of debt

The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. What is Avicorp pre-tax cost of debt

  Create general journal entries for the transactions

Prepare general journal entries for the transactions of Heidelberg Housewares, assuming the business is registered for the GST and that GST has to be added

  What is the profit margin for easter egg and poultry company

Easter Egg and Poultry Company has $1,040,000 in assets and $649,000. If the firm has an asset turnover ratio of 4.0 times, what is the profit margin?

  Compute the amount due at maturity

Problem - A business issued a $5,000, 60-day, 12% note to the bank. Compute the amount due at maturity

  Uses the weighted average process costing method

The following information is available for the current year for Pike company. Number of units in beginning WIP Inventory 12,000 (30% complete) Number of units started in the current period 160,000 Number of units in the ending WIP Inventory 18,000 (7..

  Which action of john marketing company is justified by

Which action of John Marketing Company is justified by? The John Marketing Company provides advertising services to an investment company in year A

  One effect on the day the stock dividend occurs

Joe Carry-out Coffee began the year with $89,000 in retained earnings, and 61,000 shares of $0.50 par value common stock originally issued at $10 per share. The board of directors declared $24,000 of cash dividends on June 30. On July 1, Joe Carry-ou..

  Discuss whether entity should classified as reporting entity

Discuss whether entity should classified as Reporting Entity. Zema Pty Ltd is a small proprietary company. The four members of the board of directors own 75%

  Why cash flow from operations is important

Write a short article (250 words) for a local business publication in which you explain why cash flow from operations is important information for small business owners.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd