At the reporting date, Montbrisac has a litigation provision of 60,000, deductible when paid, and revenue received in advance of 30,000, taxed when received (case data). Sufficient taxable profit is probable; the expected rate is 30%. Compute the total deductible differences and the deferred tax asset.
- Litigation provision
- 60,000
- Revenue received in advance
- 30,000
- Expected rate (%)
- 30 %