At 31 December 20X5, Aubriset has a taxable temporary difference of 400,000, arising from accelerated tax depreciation, which will reverse in full in 20X6. The 20X5 rate is 28%; a law enacted in October 20X5 sets the rate at 25% from 20X6. Compute the deferred tax liability at 31 December 20X5.
- Taxable temporary difference
- 400,000
- 20X5 rate (%)
- 28 %
- Rate enacted for 20X6 onwards (%)
- 25 %