Dear Sir,
Please help me this question:
The question is: There was a credit balance of $6.200 on this year's trail balance on the current tax account & a balance on the provision for deffered tax account of $31.600. The company has estimated the tax liability on this year's results to be $ 22.200 & wishes to increase the provision to $40.000. What amount should be debited to the SOCI for this year's tax charge if the corporate tax rate is 25%
The answers: a) $36.800 b) $56.000 c)$ 68.400 d)$ 24.400
Thanks Sir
Ask the Tutor ACCA FR
MCQ- current tax and deffered tax
D $24,400 (Current tax for the year=$16,000 + Increase in Deferred tax provision=$8,400)
But maybe the question is not complete, because I wonder what to do with the corporate tax rate of 25%.
Sir please confirm..
11y ago#2"I wonder what to do with the corporate tax rate of 25%." - it has nothing to do with arriving at $24,400 - it's a red-herring
I see, thanks!
11y ago#4You're welcome
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