Faronde has deductible differences of 900,000. Taxable differences of 200,000 (same authority, same entity) will reverse in the same periods. Its probable future taxable profit, excluding reversal deductions and taxable reversals, is estimated at 500,000 (case assumption). Tax rate: 20%. Compute the available profit and the deferred tax asset.
- Deductible differences
- 900,000
- Taxable differences reversing in the same periods
- 200,000
- Future taxable profit excluding reversal deductions and taxable reversals
- 500,000
- Tax rate (%)
- 20 %