Prey Ltd accountant has estimated current tax of P50 000 based on the current profit. The income tax value of the non- current assets are P75 000 and the carrying amount of non-current assets as at 31 December 2020 is P90 000.Tax rate is 22%. 1 Using information given above, calculate the deferred tax for the year ended 31 December 2020. 2 Calculate the figure of the tax expense that should appear in the statement of profit or loss. 3 State how should the deferred tax and current tax should be classified in the statement of financial position.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prey Ltd accountant has estimated current tax of P50 000 based on the current profit. The income tax value of the non- current assets are P75 000 and the carrying amount of non-current assets as at 31 December 2020 is P90 000.Tax rate is 22%.
1 Using information given above, calculate the deferred tax for the year ended 31 December 2020.
2 Calculate the figure of the tax expense that should appear in the statement of profit or loss.
3 State how should the deferred tax and current tax should be classified in the statement of financial position.

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