The Following Information Was Extracted from the Financial Records of Pamakari

question 3

Multiple Choice

The following information was extracted from the financial records of Pamakari Limited: Equipment purchased on 1 July 2014 for $100 000 (accounting depreciation 10% straight line tax depreciation 20% straight line) . If the company tax rate is 30%, the deferred tax item that will be recorded by Pamakari Limited at 30 June 2015 is:

• A) debit Deferred tax asset $3000
• B) credit Deferred tax asset $3000
• C) debit Deferred tax liability $3000
• D) credit Deferred tax liability $3000.