Valquessa deducted in 20X5 accelerated tax depreciation of 600,000 on moulds; a fully informed authority would probably allow only 240,000 (most likely amount used). The deferred tax liability had been computed on the tax base in the return. Rate 25%. Record the year-end entry reflecting the uncertainty consistently.
- Tax depreciation deducted
- 600,000
- Depreciation probably allowed
- 240,000
- Tax rate (%)
- 25 %