The Following Information Was Extracted from the Financial Records of Panda

question 13

Multiple Choice

The following information was extracted from the financial records of Panda Limited: equipment purchased on 1 July 2014 for $140 000 (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 Panda Limited at 30 June 2015 is which of the following?

• A) Dr Deferred tax asset $14 000
• B) Cr Deferred tax asset $4200
• C) Dr Deferred tax liability $14 000
• D) Cr Deferred tax liability $4200

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