Tauvrelle has capitalised development costs of 600,000, deducted for tax purposes when incurred (tax data of the case); they will be amortised in the accounts by thirds in 20X6, 20X7 and 20X8. A law enacted in 20X5 provides for a gradual rate cut: 26% in 20X6, 25% in 20X7 and 24% in 20X8. Compute the deferred tax liability at 31 December 20X5.
- Capitalised development costs (tax base nil)
- 600,000
- 20X6 rate (%)
- 26 %
- 20X7 rate (%)
- 25 %
- 20X8 rate (%)
- 24 %