alleryStart learning →Book depreciation is Rs 40,000 and tax depreciation Rs 1,00,000. At 30 percent, deferred tax liability created is:
ARs 12,000
BRs 18,000
CRs 30,000
DRs 42,000
Answer & Solution
Correct answer: B. Rs 18,000
The timing difference is Rs 60,000 and 30 percent of it is Rs 18,000 deferred tax liability.
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