The mutual insurer Saint-Vrain holds a bond portfolio measured at fair value, 940,000 at the reporting date; its tax base remains cost, 1,000,000 (case data). It intends to hold the securities to maturity, and its forecasts make sufficient taxable profit probable. With an expected rate of 25%, compute the deductible difference and the deferred tax asset.
- Fair value (carrying amount)
- 940,000
- Tax base
- 1,000,000
- Expected rate (%)
- 25 %