alleryStart learning →A Rs 2,00,000 difference gave a Rs 60,000 liability at 30 percent. A 25 percent rate is then enacted. Closing liability?
ARs 60,000
BRs 55,000
CRs 80,000
DRs 50,000
Answer & Solution
Correct answer: D. Rs 50,000
Measurement uses the substantively enacted rate at year end, so 25 percent of Rs 2,00,000 gives Rs 50,000.
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