Querval acquires a storage facility for 1,200,000 and initially recognises a dismantling provision of 180,000, included in the cost of the facility (treatment in the case). For tax purposes (data), the purchase price forms the tax base of the facility, the dismantling component is not part of it and the provision is deductible only when paid. Future taxable profit is probable. Tax rate: 25%. Compute the liability, the asset and the net deferred tax at the outset.
- Purchase price of the facility (deductible through tax depreciation)
- 1,200,000
- Dismantling component and provision
- 180,000
- Tax rate (%)
- 25 %