The Following Information Was Extracted from the Financial Records of Pamakari

question 7

Multiple Choice

The following information was extracted from the financial records of Pamakari Limited: Equipment purchased on 1 July 20X2 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 20X3 is:

• A)debit Deferred tax asset $10 000
• B)credit Deferred tax asset $3 000
• C)debit Deferred tax liability $10 000
• D)credit Deferred tax liability $3 000.