Find deferred tax item that will recorded by polly limited

Assignment Help Accounting Basics

Reference no: EM132725663

The following information was extracted from the financial records of Trek Limited:

Equipment purchased on 1 July 2019 for $50,000 (accounting depreciation 10% straight line tax depreciation 20% straight line).

Problem 1: If the company tax rate is 30%, the deferred tax item that will be recorded by Polly Limited at 30 June 2020 is:

Select one:

Option 1: debit Deferred tax asset $1,500
Option 2: credit Deferred tax asset $1,500
Option 3: credit Deferred tax liability $1,500
Option 4: debit Deferred tax liability $1,500

Reference no: EM132725663

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