The Following Information Was Extracted from the Financial Records of Pamakari

question 20

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) Dr Deferred tax asset $3000.
• B) Cr Deferred tax asset $3000.
• C) Dr Deferred tax liability $3000.
• D) Cr Deferred tax liability $3000.

---

Definitions:

Progressive Taxes

A tax system in which the tax rate increases as the taxable amount increases, placing a higher financial burden on wealthier individuals or entities.

Canadian Educational System

the structured and regulated network of educational institutions and policies in Canada, encompassing public and private schooling from kindergarten through higher education.

Inequality

The unequal distribution of resources, opportunities, rights, and powers among people in a society.

Moral Consent

The agreement or approval given willingly by an individual who has assessed the moral implications of an action or decision.