Ambrevin has capitalised 180,000 of development costs, amortised by 36,000 at the reporting date. Tax law (case data) deducted them in full in the year they were incurred. With an expected rate of 25%, compute the temporary difference and the deferred tax liability.
- Capitalised development costs
- 180,000
- Accumulated amortisation
- 36,000
- Expected rate (%)
- 25 %