Laurisse has decided to sell its distribution subsidiary in the first half of 20X7; in the consolidated financial statements, the investment has a carrying amount of 1,800,000 for a tax base of 2,300,000. The capital loss will be deductible at 25% (data) and Laurisse has sufficient taxable profit to use it (case assumption). Compute the difference and the deferred tax asset at 31 December 20X6.
- Consolidated carrying amount of the investment
- 1,800,000
- Tax base of the investment
- 2,300,000
- Rate at which the capital loss is deductible (%)
- 25 %