A machine of Peyrolles, depreciated faster for tax than for accounting, has a carrying amount of 420,000 and a tax base of 300,000. The rate expected on reversal, enacted at the reporting date, is 25%. Compute the taxable temporary difference and the deferred tax liability.
- Carrying amount
- 420,000
- Tax base
- 300,000
- Rate expected on reversal (%)
- 25 %