Illustration of deffered tax-financial statement, Financial Accounting

Assignment Help:

Illustration of Deffered Tax

A firm bought an item of plant at a total amount of £50,000. During the first year, the firm provided for depreciation of 10,000. The item of plant has a capital allowance of`£15,000 for the first year.

Compute the carrying amount of the asset, the tax base and hence the temporary difference.

Carrying amount                               cost – depreciation

                                                         =50,000-10,000 =40,000

 

Tax base                                            cost – capital allowance

                                                         =50,000-15,000  =35,000

 

Temporary differences                       carrying amount – tax base

                                                          =40,000-35,000  =£5,000


Related Discussions:- Illustration of deffered tax-financial statement

Accounting 2 assistance, working with par value and common value and prefer...

working with par value and common value and preferred value in accounting help

Qualitative characteristics of the accounting information, PURPOSE The ...

PURPOSE The purpose of this assignment is to provide learners opportunity to discuss the significance of the significance of the accounting principles and the qualitative chara

Liquidity ratio, For each of the ratios listed below, indicate by the appro...

For each of the ratios listed below, indicate by the appropriate code letter, whether itis a liquidity ratio, a profitability ratio, or a solvency ratio. Code: L=Liquidity rati

Mark up-branches, Mark up Mark up is defined as the rate of gross profi...

Mark up Mark up is defined as the rate of gross profit to cost of sales: Mark up = Gross Profit                Cost of sales Margin is defined as the rate of gros

Static balancing-dynamic balancing-field balancing, Static Balancing : Th...

Static Balancing : This balancing is complete in the plane of unbalance. Dynamic Balancing : In this case two balance planes are needed because forces along couples are to

Appointment of trustees-trust laws and accounts, APPOINTMENT OF TRUSTEES ...

APPOINTMENT OF TRUSTEES Capacity : Any person with legal capacity to hold property may be a trustee, except an infant. But the court will not appoint, and may remove:Persons u

determine the present value of the bonds cash flows, 1.) The Garcia Compan...

1.) The Garcia Company's bonds have a face value of $1000, will mature in ten years, and carry a coupon rate of 16 percent. Assume interest rates are made semi-annually. A.) Det

General journal to ledger accounts, Which of the following procedures invol...

Which of the following procedures involves transferring amounts recorded in the general journal to ledger accounts? Answer   a. preparing a tria

Income statement, what is the formulae for calculating Net income?

what is the formulae for calculating Net income?

Statement of owner''s equity , Prepare an income statement and statement of...

Prepare an income statement and statement of owner's equity  (month ended Mar,31 1995) Auto remair fee earned            37,300 Salaries Expense                    11500 Repair par

Write Your Message!

Captcha
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