ABC Limited Has an Asset with a Carrying Value of €50

question 5

Multiple Choice

ABC Limited has an asset with a carrying value of €50 000. The tax base of this asset is €40 000. The tax rate is 30%. As a result, which of the following deferred tax items does Roland Limited have?

• A) A deferred tax asset of €10 000;
• B) A deferred tax liability of €3000;
• C) A deferred tax liability of €10 000;
• D) A deferred tax asset of €3000.

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Definitions:

8-bit

A term referring to a byte of data, often representing a character or small integer, characterized by the use of 8 binary digits.

Byte

An eight-bit string of data, needed to represent any one alphanumeric character or simple mathematical operation.

4-bit

Refers to computing architecture or data units that are four bits in width, often associated with early computing hardware.

Microprocessor Complexity

Refers to the intricate architecture and numerous functionalities integrated within a microprocessor, determining its processing power, efficiency, and capability.