2. For the year ended 31 March 20X5, Banne Ltd had an operating profit before tax...

 

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2. For the year ended 31 March 20X5, Banne Ltd had an operating profit before tax of $660,000. Income tax has been estimated at $270, 000. For the recent financial year, (20X4), income tax had been estimated at $228, 000, but it was subsequently agreed at $243, 000. A transfer to credit of the deferred taxation account of $96, 000 will be made in 20X5. A. Calculate the tax on profits for 20X5 for disclosure in the account. B. Calculate the amount of tax payable for 20X5. C. Explain the difference between current tax and deferred tax? (10 marks) (5 marks) (5 marks) 2. For the year ended 31 March 20X5, Banne Ltd had an operating profit before tax of $660,000. Income tax has been estimated at $270, 000. For the recent financial year, (20X4), income tax had been estimated at $228, 000, but it was subsequently agreed at $243, 000. A transfer to credit of the deferred taxation account of $96, 000 will be made in 20X5. A. Calculate the tax on profits for 20X5 for disclosure in the account. B. Calculate the amount of tax payable for 20X5. C. Explain the difference between current tax and deferred tax? (10 marks) (5 marks) (5 marks)

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Answer B Estimated Tax liability amount Amount undercast for 2014 is settled in the current year 285... View the full answer