A company commenced business on 1 July 2022. On 30 June 2023, an extract of the statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information: Assets Liabilities
Cash $20 000 Accounts payable $50 000
Inventories 60 000 Provision for annual leave 8 000
Plant 200 000
Accumulated depreciation (20 000)
Additional information:
The plant was acquired on 1 July 2022. Depreciation for accounting purposes was 10% (straight-line method), while 20% (straight-line) was used for tax purposes.
The tax rate is 30%.
Using the following worksheet, determine the deferred tax asset and deferred tax liability.

\begin{array} { | l | l | l | l | l | l | l | } \hline & \begin{array} { c } \text { Caryyng } \\\text { amount }\end{array} & \begin{array} { c } \text { Future } \\\text { taxable } \\\text { amount }\end{array} & \begin{array} { c } \text { Future } \\\text { deductible } \\\text { amount }\end{array} & \text { Tax base } & \begin{array} { c } \text { Taxable } \\\text { temparary } \\\text { differences }\end{array} & \begin{array} { c } \text { Deductible } \\\text { temparary } \\\text { differences }\end{array} \\\hline \text { Assets } & & & & & & \\\hline \text { Cash } & & & & & & \\\hline \text { Irveritories } & & & & & & \\\hline \text { Plart } & & & & & & \\\hline & & & & & & \\\hline \text { Liabilities } & & & & & & \\\hline \text { Accourits payable } & & & & & & \\\hline \text { Provrn arrual leave } & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline \text { Deferred tax liability } & & & & & & \\\hline \text { Deferred tax asset } & & & & & & \\\hline\end{array}

The deferred tax asset is:
A) $2 400.
B) $6 000.
C) $8 000.
D) $20 000.

In General, the Differences Between the Accounting Treatment and the Income

Multiple Choice

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