Assume that for a particular company the only

by | Mar 18, 2020 | Uncategorized

Assume that for a particular company the only temporary difference for tax-effect accounting purposes relates to the depreciation of a newly acquired machine. The machine is acquired on 1 July 2015 at a cost of $250000. Its useful life is considered to be five years after which time it is expected to have no residual value. For tax purposes it can be fully written off over two years. The tax rate is assumed to be 30%.

a) Determine whether the depreciation of the machine will lead to a deferred tax asset, or a deferred tax liability

b) What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2018

(From Craig Deegan Financial Accounting)

Why work with us?

Authenticity:

All of our papers are authentic, as each paper of ours is composed according to your unique requirements. Confidentiality: We value you data. Our company is extremely efficient in guarding the privacy of our clients. 100% Money Back Guarantee: In the event you cancel your order, you get your money back as soon as possible, we give a 100% refund. 24/7 Support: Our team members are available via email, live chat, and phone. Revision Policy: You can apply for a revision if you think your paper could be better. In this case, your paper will be revised either by the specialist assigned to you or by another writer.

How the Platform Works

  • Click on 'Place Your Order' tab on the menu or click on 'Order Now' tab at the bottom and a new order page will appear
  • Fill in your requirements depending on your needs under the 'PAPER DETAILS' area
  • In the next section, fill in the academic level, required number of pages, paper deadline as provided in the drop-down menus.
  • To enter your registration details, click on 'CREATE ACCOUNT & SIGN IN'. This step allows you to create an account with us for purposes of record-keeping. Click on 'PROCEED TO CHECK OUT' at the bottom of the page
  • The next section requires you to fill in the payment details. Follow the guided process and soon your order will be available for our team to work on.