At the acquisition date, Garonne SA recognised a machine of the acquiree at a fair value 240,000 above its tax base. Case convention: the applicable tax rate is 30 %, the difference is a taxable temporary difference and the entry is made at business combination level, against goodwill. Record the deferred tax entry.
- Excess of fair value over tax base
- 240,000
- Applicable tax rate
- 30 %