double entry for deferred tax

Year
1 2 3 4

Carrying Value Cost- Accumulated depreciation $

3,000 2,000 1,000 nil

Tax Base Cost - Accumulated Capital Allowances $

2,400 1,200 480 nil

Temp Difference $
600 800 520 nil

Deferred Tax Liability $

150 200 130 nil

Double Entry
1 DR CR 2 DR CR Tax Expense (SOCI) Deferred tax liability (SOFP) Tax Expense (SOCI) Deferred tax liability (SOFP) $150 $150 $50 $50 4 3 DR CR DR CR Deferred tax liability (SOFP) Tax Expense (SOCI) Deferred tax liability (SOFP) Tax Expense (SOCI) $70 $70 $130 $130

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