At 30 June 2014 the statement of financial position of Eion Limited included a deferred tax...

 

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At 30 June 2014 the statement of financial position of Eion Limited included a deferred tax liability amounting to a credit balance of R11 152. The deferred tax relates to the only item of equipment owned by the company. The following information is relevant Profit before tax Wear and tear allowance Depreciation ● ● Year end 30 June 2016 2015 Required: 282 000 40 000 48 000 252 000 50 000 48 000 The tax base of the equipment at 30 June 2014 was R356 120 The current normal tax for the year ended 30June 2015 is paid in June 2016. No other tax payments were made. There are no components of other comprehensive income. The normal corporate tax rate for Eion Limited is 40%. Show the journals relating to taxation and depreciation for the years ended 30 June 2015 and 30 June 2016. At 30 June 2014 the statement of financial position of Eion Limited included a deferred tax liability amounting to a credit balance of R11 152. The deferred tax relates to the only item of equipment owned by the company. The following information is relevant Profit before tax Wear and tear allowance Depreciation ● ● Year end 30 June 2016 2015 Required: 282 000 40 000 48 000 252 000 50 000 48 000 The tax base of the equipment at 30 June 2014 was R356 120 The current normal tax for the year ended 30June 2015 is paid in June 2016. No other tax payments were made. There are no components of other comprehensive income. The normal corporate tax rate for Eion Limited is 40%. Show the journals relating to taxation and depreciation for the years ended 30 June 2015 and 30 June 2016.

Answer rating: 100% (QA)

According to the data 8018 at 30 June 2014 the statement entries ... View the full answer