alleryStart learning →An item has carrying amount Rs. 100 and tax base Rs. 60. Sale is taxed at 20%. Deferred tax liability if it will be sold:
ARs. 8
BRs. 12
CRs. 20
DRs. 6
Answer & Solution
Correct answer: A. Rs. 8
The taxable difference is 100 - 60 = 40, and 40 at the 20% sale rate is Rs. 8.
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