FAC3701 Assignment 1 Due 23 August 2024 (Detail Answers)

FAC3701


Assignment 1


Semester 2 2024


DUE 23 August 2024

, a) Calculation of Deferred Tax Balance
For the year ended 30 June 2022:


Administration Building:


No tax allowance for the building. Thus, the carrying amount and tax base are the
same.
Deferred tax impact: None.
Delivery Vehicles:


𝐶𝑎𝑟𝑟𝑦𝑖𝑛𝑔 𝑎𝑚𝑜𝑢𝑛𝑡 𝑎𝑡 30 𝐽𝑢𝑛𝑒 2022: 𝑅262,500
𝑇𝑎𝑥 𝑏𝑎𝑠𝑒 𝑎𝑡 30 𝐽𝑢𝑛𝑒 2022: 𝑅243,750
𝑇𝑒𝑚𝑝𝑜𝑟𝑎𝑟𝑦 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒: 𝑅262,500 − 𝑅243,750 = 𝑅18,750
𝐷𝑒𝑓𝑒𝑟𝑟𝑒𝑑 𝑡𝑎𝑥 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦 (𝐷𝑇𝐿) @ 27% (𝑟𝑎𝑡𝑒 𝑓𝑜𝑟 2023, 𝑎𝑝𝑝𝑙𝑖𝑐𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑓𝑢𝑡𝑢𝑟𝑒 𝑦𝑒𝑎𝑟𝑠): 𝑅18,750
× 27% = 𝑅5,062.50


Deferred tax liability at 30 June 2022: R5,062.50


For the year ended 30 June 2023:


Administration Building:


No tax allowance for the building. Thus, the carrying amount and tax base are the
same.
Deferred tax impact: None.
Delivery Vehicles:


𝐶𝑎𝑟𝑟𝑦𝑖𝑛𝑔 𝑎𝑚𝑜𝑢𝑛𝑡 𝑎𝑡 30 𝐽𝑢𝑛𝑒 2023: 𝑅237,500 (𝑎𝑓𝑡𝑒𝑟 𝑠𝑎𝑙𝑒 𝑜𝑓 𝑜𝑙𝑑 𝑣𝑒ℎ𝑖𝑐𝑙𝑒𝑠)
𝑇𝑎𝑥 𝑏𝑎𝑠𝑒 𝑎𝑡 30 𝐽𝑢𝑛𝑒 2023: 𝑅206,250 (𝑡𝑎𝑥 𝑏𝑎𝑠𝑒 𝑎𝑓𝑡𝑒𝑟 𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑖𝑛𝑔 𝑓𝑜𝑟 𝑡𝑎𝑥 𝑎𝑙𝑙𝑜𝑤𝑎𝑛𝑐𝑒𝑠)
𝑇𝑒𝑚𝑝𝑜𝑟𝑎𝑟𝑦 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒: 𝑅237,500 − 𝑅206,250 = 𝑅31,250
𝐷𝑒𝑓𝑒𝑟𝑟𝑒𝑑 𝑡𝑎𝑥 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦 (𝐷𝑇𝐿) @ 27%: 𝑅31,250 × 27% = 𝑅8,437.50