The year-end Trial Balance of Aroma plc reports a debit balance of £4,800 described as taxation. This amount represents an underprovision for previous year’s taxation. Taxation on current year’s profit is estimated at £72,800. Identify taxation expense to be reported in the current year’s Statement of income and, as current liability, in the corresponding Statement of financial position.

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Tax expense a £72,800 b £68,000 c C £72,800 d £77,600 Tax liability £68,000 £72,800 £77,600 £72,800