Income Tax: Impact of revaluation
Can somebody explain the impact of revaluation ?
The different accounting treatment for depreciation of an equipment result in temporary differences in carrying amount and tax base, which are given below.Assume the equipment is revalued in 2015. There is a revaluation surplus of $100,000. The applicable tax rate is 30%.
On 31 December, 2013
On 31 December, 2014
On 31 December, 2015
The deferred tax liability that should be reflected on the balance sheet for 2015 is closest to: