Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

A asset has a carrying value 10,500 and the fair value at balance sheet date 17,250. assuming tax rate 25%. What is the deferred tax asset/liability.

a.1687.5 Def.Tax asset b.5062.5 Def Tax asset c.6750 Def.Tax liability d.1687.5 Def.Tax liability

Corporate Law Corporate Tax Financial Accounting Financial Analysis Financial Forecasting
user-image
Question added by Abid Waheed
Date Posted: 2014/04/01
Upvote (1) Views (20) Followers (3) Answers (6) Report Question
Write an Answer
Register now or log in to answer.
Abid Waheed
by Abid Waheed

Temporary Difference in  value = Fair Value of asset-carrying value of asset

                                                        = =  6750 

                                                                                    =6750*25% =  1687.5 (positive, so Def Tax Liab)

Muhammad Zubair
by Muhammad Zubair , CFO / Chief Accountant , RH Group

d.1687.5 Def.Tax liability

Murtaza Kalabhai
by Murtaza Kalabhai , Accountant , Al Raj Mobile Phones Trading L.L.C

option "D:1687.5 Def. Tax Liability " is right

Adilur Rahman Adil
by Adilur Rahman Adil , Manager , Corporate Tax & Company Affairs

D

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

d

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

THEThe Answer D1687.5

Write Your Answer
More Questions Like This