A company commenced business on 1 July 2022. On 30 June 2023, an extract of the statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information: Assets Liabilities Cash $ 20 000 Accounts payable $50 000 Inventories 60 000 Provision for annual leave 8 000 Plant 200 000 Accumulated depreciation (20 000) Additional information: The plant was acquired on 1 July 2022. Depreciation for accounting purposes was 10% (straight- line method), while 20% (straight-line) was used for tax purposes. The tax rate is 30%. The deferred tax liability is (hint: use worksheet): a. $2 400 b. $6 000 c. $8 000 d. $20 000 e. None of the above .

1. A company commenced business on 1 July 2022. On 30 June 2023, an extract of the statement of
financial position prepared for internal purposes, but excluding the effect of income tax,
disclosed the following information:
Assets Liabilities
Cash $ 20 000 Accounts payable $50 000
Inventories 60 000 Provision for annual leave 8 000
Plant 200 000
Accumulated depreciation (20 000)
Additional information:
The plant was acquired on 1 July 2022. Depreciation for accounting purposes was 10% (straight-
line method), while 20% (straight-line) was used for tax purposes. The tax rate is 30%. The
deferred tax liability is (hint: use worksheet):
a.
$2 400
b.
$6 000
c.
$8 000
d.
$20 000
e.
None of the above