User Account

All Pages

What would be the balance of the deferred tax liability

Assignment Help Accounting Basics
Reference no: EM132722873

Question: 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.

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

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

Reference no: EM132722873

Questions Cloud

Explain the reason for the selected methodology : Explain the concept of information systems planning. Compare at least two development planning methods. Explain the reason for the selected methodology.
What is accumulated depreciation of the disposed property : What is the accumulated depreciation of the disposed property, plant and equipment in fiscal year 2020? Hint: Please download Clorox Annual Report for Fiscal.
Discuss about the business culture : Search about their business culture. how to do business or the procedure to open up a business or factory in the country. Prepared a report.
How many years must you wait until it will grow : You wish to join a club that has an initiation fee of $40,000. You only have $23,000 available for this right now. You can invest in a fund that pays 3.5% per.
What would be the balance of the deferred tax liability : Assume that for possoes ltd the only temporary difference for tax-effects accounting purposes relates to the depreciation of a newly acquired machine.
What transaction price will leo estimate for the contract : Leo Consulting enters into a contract with Highgate University to restructure Highgate's processes for purchasing goods from suppliers.
What would be the incremental income : Yumminess has asked Jordon and Taylor to consider making Extra Attack Brownies and Nutty Attack Brownies, in addition to Chocolate Attack Brownies.
What was bad debt expense for the given year : Baz corp. is a jewelry company that sells custom rings. At the beginning of the year, their customers owed them $2,500,000 but they estimated about $300,000.
What is the annual worth of the investment : What is the decision rule for judging the attractiveness of investments based on annual worth? Mayvery, Inc., is considering design change that will cost $6,000

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the company return on common stockholders equity

Carrier Company reported net income of $360,000 and paid dividends of $30,000 on its preferred stock, What is the company's return on common stockholders equity

  Discuss what is the machine''s net present value

Rayburn Industries is evaluating the investment of $143,100 in a new packing machine that should provide annual cash operating inflows of $30,660

  A receiving department compares inventory items received

a receiving department compares inventory items received with copies of purchase orders. the purchase orders list the

  Perch co acquired 80 of the common stock of float corp for

perch co. acquired 80 of the common stock of float corp for 1600000. the fair value of floats net assets was 1850000

  Terri age 16 is claimed as a dependent on her parents 2011

terri age 16 is claimed as a dependent on her parents 2011 return. during the year terri earned 5000 in interest income

  What caused the fifo and lifo gross profit figures to differ

Suppose a Waldorf store in Atlanta, Georgia, ended November 20X6 with 800,000 units of merchandise, What caused the FIFO and LIFO gross profit figures to differ

  How much can he deduct in each year

If his share of the partnership losses is $35,000 in 2018 and $25,000 in 2019, how much can he deduct in each year

  Calculate the receivables net realizable value at year end

The company estimates that it will be unable to collect 2% of its sales on account. Calculate the receivables net realizable value at year end

  What was net income of Coho Company

If Coho Company had net income of $382,800 in 2017 and it experienced a 16% increase in net income over 2016, what was its 2016 net income?

  Journal entry to distribute rozow''s total earnings

M. Rozow of Covington Manufacturing Co. is paid at the rate of $20 an hour for an 8 hour day with time and a half for over time and double time for Sundays and holidays.

  What marginal cost of capital will it incur

The firm's marginal tax rate is 30 percent. If FC expects to generate $27,000 in retained earnings this year, what marginal cost of capital will it incur

  Sleek ride a company providing limo services has a december

sleek ride a company providing limo services has a december 31 year-end date. for sleek ride the following transactions

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