On 1 January 20X6, Jassora leases a warehouse: right-of-use asset of 400,000 and lease liability of 400,000. Under the tax law (case data), lease payments are deductible when paid: the tax bases of the right-of-use asset and of the liability are nil. Sufficient taxable profit is probable. Tax rate: 25%. Compute the deferred tax liability and asset at the commencement date.
- Right-of-use asset at commencement
- 400,000
- Lease liability at commencement
- 400,000
- Tax rate (%)
- 25 %