Shep was incorporated on 1 January 2015. In the year ended 31 December 2015 the company made a profit before taxation of $121,000.

 

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During the period Shep made the following capital additions. $ Plant Motor vehicles During the period: Accounting depreciation 48,000 12,000 11,000 15,000 Tax depreciation Tax is chargeable at a rate of 30%. Required Calculate the corporate income tax liability for the year ended 31st December 2015. Calculate the deferred tax balance that is required in the statement of financial position as at 31st December 2015. Prepare a note showing the movement on the deferred tax account and thus calculate the deferred tax charge for the year ended 31st December 2015 Prepare the statement of profit or loss note which shows the compilation of the tax expense for the year ended 31st December 2015. During the period Shep made the following capital additions. $ Plant Motor vehicles During the period: Accounting depreciation 48,000 12,000 11,000 15,000 Tax depreciation Tax is chargeable at a rate of 30%. Required Calculate the corporate income tax liability for the year ended 31st December 2015. Calculate the deferred tax balance that is required in the statement of financial position as at 31st December 2015. Prepare a note showing the movement on the deferred tax account and thus calculate the deferred tax charge for the year ended 31st December 2015 Prepare the statement of profit or loss note which shows the compilation of the tax expense for the year ended 31st December 2015.

Answer rating: 100% (QA)

To calculate the corporate income tax liability for the year ended 31st December 2015 and the deferred tax balance we need to calculate the tax on the ... View the full answer