User Account

All Pages

What would be the balance of the deferred tax liability

Assignment Help Accounting Basics
Reference no: EM132686670

Assume that for possoes ltd the only temporary difference for tax-effects accounting purposes relates to the depreciation of a newly acquired machine. The machine is acquired on 1 july 2015 at a cost of $255,000. Its useful life is considered to be ten years, after which it is expected to have no residual value. For tax purposes it can be fully written off over five years. The tax rate is assumed to be 30 per cent.

Problem 1. Determine whether the depreciation of the machine will lead to a deferred tax asset, or a deffered tax liability. Explain.

Problem 2. What would be the balance of the deferred tax liability as at 30 june 2021?

Reference no: EM132686670

Questions Cloud

Research the design intent of your Case Study House : Case Study House and find plans, sections, and elevations with enough information to allow you to model it Model your chosen Case Study House in your
What is accumulated other comprehensive income : January 1 of $48,000 (credit), and other comprehensive income for the year of $2,000 (gain), what is accumulated other comprehensive income at year-end?
Determine the total cost of Rims according to the ABC system : Rims require $15 in direct materials per unit, and Posts require $12. Determine the total cost of Rims according to the ABC system
What internal controls were missing at crazy eddie : What was the impact on the financial statements of Crazy Eddie by claiming physical inventory they did not have? What internal controls were missing at Crazy
What would be the balance of the deferred tax liability : Determine whether the depreciation of the machine will lead to a deferred tax asset, or a deffered tax liability. What would be the balance of the deferred tax
How do the given concepts tie together : How do these concepts tie together? Which concept is the most important. Rank them and provide the reasons why you ranked them as you did?
Contrast aerobic respiration-anaerobic respiration : Contrast aerobic respiration, anaerobic respiration, and fermentation
Why would congress allow things to taxed at different rates : How can preferentially taxed items be taxed at different tax rates? Why would Congress allow things to be taxed at different rates?
Compare the different carbon fixation pathways : Compare the different carbon fixation pathways (C3, C4, and CAM).

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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