What are the balances of the deferred tax liability and deferred tax asset at 30 June 2020?
At 30 June 2019, Beta Ltd had the following
Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included the
following items:
Depreciation expense – plant $7,000
Doubtful debts expense 3,000
Long-service leave expense 4,000
For
Tax depreciation – plant $8,000
Depreciation ratesfor taxation purposes are higher than for accounting purposes. A corporate tax rate
of 30% applies.
What are the balances of the deferred tax liability and deferred tax asset at 30 June 2020?
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