Fennoric operates a vineyard whose bare land, which is not depreciable, is measured under the IAS 16 revaluation model at 2,100,000; the tax base recognised on disposal is 1,500,000. Under the legislation in the case, tax is 30% on operating income and 16% on gains on land. Compute the deferred tax liability relating to the land.
- Revalued amount of the land
- 2,100,000
- Tax base on disposal
- 1,500,000
- Rate on operating income (%)
- 30 %
- Rate on gains (%)
- 16 %