A Limited accrued $10 000 for employees’ long service leave in the year ended 30 June 2020. This item will not be tax de
Posted: Sun Jul 03, 2022 1:06 pm
A Limited accrued $10 000 for employees’ long service leave inthe year ended 30 June 2020. This item will not be tax deductibleuntil it is paid in approximately 5 years’ time. If the company taxrate is 30% A Limited must record the following tax effect as a endof reporting period adjustment:
a. CR Deferred tax asset $3 000
b. DR Deferred tax liability $3 000
c. DR Deferred tax asset $3 000
d. CR Deferred tax liability $3 000
a. CR Deferred tax asset $3 000
b. DR Deferred tax liability $3 000
c. DR Deferred tax asset $3 000
d. CR Deferred tax liability $3 000