On 1 January 20X4, Galdrix recognised goodwill of 640,000, whose tax base was equal to that amount. The tax law (case data) allows it to be deducted at 80,000 a year; at 31 December 20X5, 2 years have been deducted and the carrying amount of goodwill is unchanged. Tax rate: 25%. Compute the difference and the deferred tax at the reporting date.
- Carrying amount of goodwill
- 640,000
- Annual tax amortisation
- 80,000
- Years of tax amortisation elapsed
- 2
- Tax rate (%)
- 25 %