Itravelle enjoyed a reduced rate of 15% reserved for unlisted companies. After its initial public offering, its differences will be taxed at 25% (legislation in the case). Its taxable differences of 800,000 all arise from accelerated tax depreciation. Compute the deferred tax liability after the change and the expense recognised in profit or loss.
- Taxable differences
- 800,000
- Rate before the change (%)
- 15 %
- Rate after the change (%)
- 25 %