Ombrival holds two machines depreciated faster for tax. At the reporting date, the taxable temporary differences are 60,000 (machine A) and 20,000 (machine B); the expected rate is 30% and the deferred tax liability was 15,000 at the start of the year. Record the change in profit or loss.
- Taxable difference, machine A
- 60,000
- Taxable difference, machine B
- 20,000
- Expected rate (%)
- 30 %
- Opening deferred tax liability
- 15,000