Dunevaux has 900,000 of losses carried forward, which will expire at the end of 20X8 (tax data). Its taxable differences with the same authority and entity will reverse by 300,000 before that date and by 200,000 afterwards. It also expects 250,000 of probable taxable profit before expiry (case assumption). Tax rate: 25%. Compute the usable losses and the deferred tax asset.
- Losses carried forward expiring end of 20X8
- 900,000
- Taxable differences reversing before expiry
- 300,000
- Taxable differences reversing after expiry
- 200,000
- Other probable taxable profit before expiry
- 250,000
- Tax rate (%)
- 25 %