Page 123 - Finac1 Test 1 slides
P. 123
INCOME TAXES
Prepayments - example
Assume that a company, incorporated in the current
year, paid insurance in advance amounting to R1 000.
The profit before tax is R5 000 for the year ended 31
December 20.12. The tax rate is 28%.
Deferred tax is provided on all temporary differences
according to the statement of financial position
approach.
Required: Calculate the deferred tax expense for the year
ended 31 December 20.12.
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