On 1 July 20X6, Lindrave commences an office lease: right-of-use asset of 320,000 and lease liability of 320,000. For tax purposes (case data), lease payments are deductible only when paid; both tax bases are nil and future taxable profit is probable. Tax rate: 25%. Record the deferred tax entry at the commencement date.
- Right-of-use asset
- 320,000
- Lease liability
- 320,000
- Tax rate (%)
- 25 %