Question · Deductible temporary differences and deferred tax assets

At the end of its first year, Pradelune identifies a deductible temporary difference of 84,000, arising from provisions recognised in profit or loss and deductible when paid. Sufficient taxable profit is probable; the expected rate is 25%. No deferred tax existed at the start of the year. Record the entry.

Deductible temporary difference

84,000

Expected rate (%)

25 %