Halverine is subject to a graduated scale (case data): 10% up to 100,000 of taxable profit, 20% from 100,000 to 300,000 and 28% above. It has a deductible temporary difference of 75,000 that will reverse next year, for which it expects taxable profit of 500,000; the asset is recoverable. Compute the expected average rate and the deferred tax asset.
- Expected taxable profit of the year of reversal
- 500,000
- Deductible temporary difference
- 75,000