Hello Chris!
Need your help for a question.
-current tax payable
20x8= $150000, 20x7= nil
-deferred tax
20x8=$50000.
20x7=30000
Income tax for the year was $160,000.
What is the amount of tax that Pinto either received or paid during the year?
1. The answer is $60000 received.
2. The working in the kit is as follows:
B/f current(asset) (50000)
B/f deferred tax 30000
charge to the year 160000
received(balance) 60000
balance c/f( current+deferred) 200000
3. Could you explain do we deduct 50000, that is, "B/f current(asset) (50000)"
Thanks in advance
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statement of cash flow
8y ago#1Hi,
There must be some other information in the question that gives us the opening balance. It isn't a tax payable balance, so presumably there is an amount due from the tax authorities in the form of a tax rebate.
Thanks
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