A Ltd purchased four motor vehicles for $50000 each on 1/1/2015. The company depreciates motor vehicles on a straight-line basis. Their expected useful life is six years.Each motor vehicle has a residual value of $5000. For tax purposes, the motor vehicles depreciate at 20% per annum on a straight-line basis. Accounting profit before tax (PBT) for the years 2015 to 2020 is $60000 per annum. The tax rate is 12.5%. Required Calculations of current and deferred tax Related figures to be included in the financial statements for the years 2015 to 2020
A Ltd purchased four motor vehicles for $50000 each on 1/1/2015. The company depreciates motor vehicles on a straight-line basis. Their expected useful life is six years.Each motor vehicle has a residual value of $5000. For tax purposes, the motor vehicles depreciate at 20% per annum on a straight-line basis. Accounting profit before tax (PBT) for the years 2015 to 2020 is $60000 per annum. The tax rate is 12.5%. Required Calculations of current and deferred tax Related figures to be included in the financial statements for the years 2015 to 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A Ltd purchased four motor vehicles for $50000 each on 1/1/2015.
The company
Their expected useful life is six years.Each motor vehicle has a residual value of $5000.
For tax purposes, the motor vehicles depreciate at 20% per annum on a straight-line basis.
Accounting profit before tax (PBT) for the years 2015 to 2020 is $60000 per annum.
The tax rate is 12.5%.
Required
- Calculations of current and
deferred tax - Related figures to be included in the financial statements for the years 2015 to 2020
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