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  • A) Deferred Tax

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    SARASVATHYDEVI SUBRAMANIAM
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    Vogue owns property, plant, and equipment with a carrying amount of £682,000 but a lower tax written down value of £514,000. In the prior year, Vogue reported a deferred tax liability of £42,600. To calculate the current year's deferred tax, the temporary difference between the carrying amount and tax base is multiplied by the tax rate.

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    Vogue owns property, plant, and equipment with a carrying amount of £682,000 but a lower tax written down value of £514,000. In the prior year, Vogue reported a deferred tax liability of £42,600. To calculate the current year's deferred tax, the temporary difference between the carrying amount and tax base is multiplied by the tax rate.

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    4 views2 pages

    A) Deferred Tax

    Uploaded by

    SARASVATHYDEVI SUBRAMANIAM
    Vogue owns property, plant, and equipment with a carrying amount of £682,000 but a lower tax written down value of £514,000. In the prior year, Vogue reported a deferred tax liability of £42,600. To calculate the current year's deferred tax, the temporary difference between the carrying amount and tax base is multiplied by the tax rate.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    a) Deferred Tax

    Vogue own several items of property, plant and equipment which are eligible for capital
    allowances (tax depreciation). As at 31 December 2018 the carrying amount of these assets
    was £682,000 and the tax written down value (tax base) was £514,000. Vogue pay
    corporation tax at 23% and show a deferred tax liability in the prior year’s financial
    statements of £42,600.

    Required:

    Discuss and calculate the deferred tax that Vogue will show in their financial statements
    for the year ended 31 December 2018 and give the accounting journals to record this in
    the accounts.

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