Amigos Limited Has an Asset with a Carrying Value of $60

question 2

Multiple Choice

Amigos Limited has an asset with a carrying value of $60 000. The tax base of this asset is $40 000. The tax rate is 30%. The deferred tax item to be recognised by Amigos Limited is:

• A) Deferred tax liability of $20 000.
• B) Deferred tax asset of $20 000.
• C) Deferred tax liability of $6000.
• D) Deferred tax asset of $6000.

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Definitions:

Theory of Planned Behavior

A theory that predicts an individual's intention to engage in a behavior at a specific time and place, considering the attitude toward the behavior, subjective norms, and perceived behavioral control.

Subjective Norms

Individual beliefs about what significant people in their life think they should do, influencing their intentions and behaviors.

Social Psychological Theories

Theories developed within social psychology to explain how individual behavior and thought are influenced by social conditions and processes.

Reliability

The degree to which an assessment tool produces stable and consistent results over time.