This question has been answered
Question

Chilli Pepper Ltd depreciate its machinery using 10 years useful life

but the useful life for such asset for tax purposes is 15 years. Chilli Pepper Ltd purchased machinery on 1 July 2018 for $500,000. Which one of the following is correct?
Assume a Tax rate of 30%.
Select one:
Taxable temporary difference as at 30 June 2020 is $16,667
Deductible temporary difference as at 30 June 2020 is $33,333
None of these
Taxable temporary difference as at 30 June 2020 is $43,333
Taxable temporary difference as at 30 June 2020 is $33,333

Answered by Expert Tutors
Step-by-step explanation
The student who asked this found it Helpful
Overall rating 100%
Chilli Pepper Ltd depreciate its machinery using 10 years useful life but the useful life for such asset for tax purposes is 15 years. Chilli Pepper
Get unstuck

338,976 students got unstuck by Course
Hero in the last week

step by step solutions

Our Expert Tutors provide step by step solutions to help you excel in your courses