Moses Limited purchased a new machine on 1 January 2017 and brought it into use immediately. The machine is depreciated at 25% per annum on the straight-line basis with no residual value. For tax purposes , a 30/30/20/20 tax allowance is applied. The reporting date of the company is 31 December. The tax rate is 30 %. The profit before tax (after taking depreciation into account) for each of the four years were as follows. 2017 - N$ 80 000 2018 - N$ 100 000 2019 - N$ 110 000 2020- N$ 130 000

8a. Calculate current tax payable for the years ended 2017, 2018, 2019 and 2020.

8b. Calculate deferred tax liability and deferred tax movements for the years ended 2017,2018,2019 and 2020

8c. Show all the journals required to show the movement in deferred tax for the year ended 2017,2018,2019 and 2020.

8d. Show the extracts from the Statement of Profit and Loss and Other Comprehensive Income and Statement of Financial Position to account for the Income tax expense, Deferred tax and Income tax owing for the years 2017, 2018, 2019 and 2020

Answer rating: 100% (QA)

8a Current tax payable for the years ended 2017 2018 2019 and 2020 2017 N 80000 30 N 24000 2018 N 10... View the full answer