Purple Ltd purchased a depreciable asset for $900,000 on 1 July 2014.For accounting purposes, it is estimated to have a useful life of 8 years with no residual value. Fortaxation purposes, the useful life is 6 years with no residual value. The asset is depreciated on astraight-line basis for both accounting and tax purposes.Tax rate is 30%.What is the adjustment required in the deferred tax liability account for the year ended 30 June2020 and 30 June 2021 respectively in accordance with the requirements of AASB112 IncomeTaxes?$11,250; $11,250$11,250; $33,750$11,250; ($33,750)$11,250; ($11,250)

Part 2: ExplanationStep 1: Calculate the annual depreciation for accounting and tax purposes.The…

Answered: Purple Ltd purchased a depreciable…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 42P

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Assume that for a particular company the only temporary difference for tax effect accounting purposes relates to the depreciation of a newly acquired machine. The machine is acquired on 1 July 2015 at a cost of $212,000. Its useful life is considered to be 7 years, after which time it is expected to have no residual value. For tax purposes it can be fully written off over 5 years. The tax rate is assumed to be 30 per cent. What would be the balance of the deferred tax asset or deferred tax liability as at 30 June 2018. Type in the answer below the correct amount. Answer:
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