Fontagne has an unused research tax credit of 80,000, which can be offset against tax payable in subsequent years before it expires (tax data). Its probable taxable profit before that date is 200,000 (case assumption). Tax rate: 25%. Compute the deferred tax asset and the credit not recognised.
- Unused tax credit
- 80,000
- Probable taxable profit before the credit expires
- 200,000
- Tax rate (%)
- 25 %