Estrabel revalues the land of its head office to 1,200,000 under the IAS 16 revaluation model; its tax base, equal to its cost, is 700,000. Under the legislation in the case, operating profits are taxed at 25% and gains on disposal of real estate at 19%. Estrabel has no intention of selling. Compute the deferred tax liability.
- Revalued amount of the land
- 1,200,000
- Tax base of the land
- 700,000
- Rate on operating profits (%)
- 25 %
- Rate on gains on disposal (%)
- 19 %