On 15 December 20X6, Novessa signs the sale, to be completed in March 20X7, of its investment in a loss-making subsidiary; the deductible difference associated with the investment, which comes from losses recognised in profit or loss, is 240,000. The capital loss will be deductible at 25% and taxable profit is sufficient (case data and assumptions). Record the entry at 31 December 20X6.
- Deductible difference associated with the investment
- 240,000
- Rate at which the capital loss is deductible (%)
- 25 %