At 1 April 20X5, Winchester had a deferred tax liability of $7,000 in respect of accelerated depreciation. At 31 March 20X6, the carrying amount of property, plant and equipment was $240,000 and its tax base was $180,000. The income tax rate applicable to Winchester is 25%. What will be the expense to profit or loss for the year ended 31 March 20X6 in respect of deferred tax? A $22,000 B $15,000 C $13,250 D $8,000

In the previous year, SAM Ltd had made a tax loss of $60,000 for which it had recognized a deferred tax asset. The taxable profit for the current year before recoupment of tax loss is $250,000. SAM Ltd had claimed exempt income of $40,000 in calculating its current taxable profit. Ignore all other temporary differences. Tax rate is 30%. What is the current tax liability of SAM Ltd after recoupment of the tax loss?

For the year ended 30 June 2020, Marshall Ltd (Marshall) had an accounting profit of $200 000 and a taxable profit of $170 000. The tax expense of Marshall for the year ended 30 June 2020 was $60 000. At 30 June 2020 it was determined that the company had a deferred tax liability of $27 000. Assume that there was no deferred tax asset at the beginning or end of the period.The tax rate is 30 per cent.Which of the following statements is correct in accordance with AASB 112 Income Taxes?Group of answer choicesThe deferred tax expense for the year ended 30 June 2020 was $27,000.The current tax expense for the year ended 30 June 2020 was $33,000.The deferred tax liability as at 30 June 2019 was $18,000.The deferred tax liability as at 30 June 2019 was $0.

During the year ended 31 December 2012 a business purchased a vehicle for $23 500. On30 September 2015 it was sold for $3500. Depreciation was charged at 20% per annum using thestraight line method. A full year’s depreciation was charged in the year of purchase and the yearof disposal.What was the profit or loss on disposal of the vehicle?A $1200 lossB $1200 profitC $5900 lossD $5900 profit

Create Corp had machinery and equipment with the cost basis of $50,000 in 2020 fully used in the business. They took the 100% special bonus depreciation in the first year, therefore the written down value is zero. During the current year, they sold this machinery for $35,000. What is the taxable Gain/Loss from the sale of machinery?

Saginaw Inc. completed its first year of operations with a pretax loss of $742,500. The tax return showed a net operating loss of $896,500 that the company will carry forward. The $154,000 book-tax difference results from excess tax depreciation over book depreciation. Management has determined that they should record a valuation allowance equal to the net deferred tax asset. Assume the current tax expense is zero. b. Prepare the journal entry to record the deferred tax consequences for recognition of the current year NOL before considering the valuation allowance. C prepare the journal entry to record deferred tax consequences of valuation allowance D prepare the journal entry to record deferred tax consequences of depreciation book-tax differences