CIMA Exam CIMAPRA19-F02-1 Topic 5 Question 94 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 94
Topic #: 5

The tax benefit on a company's asset is 180,000 and the useful life on that asset is five years. The company creates a deferred tax provision to spread this benefit over the asset's useful life.

What entry is needed to reduce this deferred tax provision in the company's year two accounts?

ADR Deferred tax liability (SOFP) 36,000

BCR Deferred tax liability (SOFP) 36,000

CDR Corporation tax (income statement) 36,000

DCR Corporation tax (income statement) 36,000

EDR Deferred tax liability (SOFP) 144,000

FCR Deferred tax liability (SOFP) 144,000

GDR Corporation tax (income statement) 144,000

HCR Corporation tax (income statement) 144,000

Show Suggested Answer

Suggested Answer: B

by Lizbeth at Aug 02, 2024, 01:45 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Beatriz

1 days ago

I think the answer is A) DR Deferred tax liability (SOFP) 36,000.

upvoted 0 times

...