Kalum Ltd. purchased a building in January 2023 for $ 500,000. For tax purposes, depreciation is of 2% per year using the straight-line depreciation method. Depreciation for accounting purposes is 5% using the straight-line depreciation method. The tax rate is 40%.
According to IAS 12 – ‘Income Taxes’, what should be the deferred tax balance at 31 December 2025?
