A company's trial balance shows a debit balance of $2.1 million brought forward on current tax and a credit balance of $5.4 million on deferred tax. The tax charge for the current year is estimated at $16.2 million and the carrying amounts of net assets are $13 million in excess of their tax base. The income tax rate is 30% What amount will be shown as income tax in the statement of profit or loss for the year? A $15.6 million B $12.6 million C $16.8 million D $18.3 million
A company's trial balance shows a debit balance of $2.1 million brought forward on current tax and a credit balance of $5.4 million on deferred tax. The tax charge for the current year is estimated at $16.2 million and the carrying amounts of net assets are $13 million in excess of their tax base. The income tax rate is 30% What amount will be shown as income tax in the statement of profit or loss for the year? A $15.6 million B $12.6 million C $16.8 million D $18.3 million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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100%
A company's
balance of $5.4 million on
the carrying amounts of net assets are $13 million in excess of their tax base. The income tax rate is 30%
What amount will be shown as income tax in the statement of profit or loss for the year?
A $15.6 million
B $12.6 million
C $16.8 million
D $18.3 million
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- A company's
trial balance at 31 December 2021 shows a debit balance of GHS700,000 on current tax and a credit balance of GHS8,400,000 on deferred The directors have estimated the provision for income tax for the year at GHS4.5m and the requireddeferred tax provision is GHS5.6m, GHS1.2m of which relates to a property revaluation. What is the profit or loss income tax charge for the year ended 31 December 2021?
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