Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ii. mayor limited purchased a specialised equipmen

II. Mayor Limited purchased a specialised equipment for $14,000,000 on 1 October 2019. It had...

80.2K

Verified Solution

Question

Accounting

II. Mayor Limited purchased a specialised equipment for $14,000,000 on 1 October 2019. It had an estimated life of 5 years and an estimated residual value of $1,200,000. The plant is depreciated on a straight line basis. The tax authorities do not allow depreciation as a deductible expense.

Instead a tax expense of 40% of the cost of this type of asset can be claimed against income starting tax in the year of purchase and 20% per annum of its cost thereafter for 3 years, straight-line. The rate of income tax can be taken as 35%.

Required:

In respect of the above item of equipment, calculate the deferred tax charge/credit in Bowdens Statement of Comprehensive Income for the two (2) years to 30 September 2019 and 2020 and the deferred tax balance in the statement of financial position at those dates.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Why is bank lending to large corporations more difficult than making loans to small firms? What...

Finance
Q

the Al(H2O)63+ ion is formed when an Al3+ ion acting as a Lewis acid picks up...

Chemistry
Q

13 In a Fraunhofer diffraction at a single slit of width d with incident light...

Physics
Q

Based on the given lengths determine whether the segments can form a triangle Drag each...

Geometry
Q

Sketch a graph of the function f(x) = 5 sin (1/2 x)

Basic Math
Q

Answer the following Round your answers to the nearest hundredth a Convert 2 47 radians...

Basic Math
Q

Charles's pay varies directly with the number of words he writes for Two Cities Magazine....

Basic Math
Q

Consider h(y) = - 5y-8y - 9 on [ - 4, 2].Determine the interval over...

Calculus
Q

Bailey Corporation, prepares the following adjustments required at the end of the month on July...

Accounting
Q

NEW Homework: Chapter 1:6 Homework Save Score: 0.25 of 1 pt 3 of 4 (4...

Accounting
Q

The Wonder Products Company is expanding fast and therefore will not pay any dividends for...

Finance
Q

Riyadh Star, Balance Sheet Statement December 31, 2018 & December 31, 2019 ...

Accounting