Problem 12.

Fixed asset: taxable temporary diff (TTD): 910,000; 820,000; 730,000

Development expenditures: TTD: 600,000; 600,000; 400,000  Ignored (under IAS 12.15)

Provision: DTD: 60,000; 75,000; 90,000

Interest: 0; 0 0

Taxable income: 600,000 & 2,267,000

Tax rate: 22% & 20%

Current tax payable: 132,000 & 453,400

Defferal tax liablity: 95,700 & -189,500

Problem 11.2

Tax rate: 24%

Current tax payable: 587,784

Ignored: Non qualigying intangible asset

DTL: 5,760

Poblem 11.3

Tax rate: 24%

Taxable income: -1,050,900

Current tax payable: 0

DTA: lower of the tax loss and net TTD: 32,160

Dr Deferred tax asset: 32,160

Cr Deferred tax liablity: 5,760

Cr tax expnese: 26,400

Problem 11.4

Tax rate: 25% & 20%

Current tax: 227,825 & 173,880

DTL (1/1/X2): 38,000 (25%)

DTL (31/12/x2): 22,250 (25%)

 Adjust: 15,750
Dr Tax expense: 212, 075 & 171,830
Dr DTL: 15,750 & 2,050
Cr Tax payable: 227,825 & 173,880

Problem 11.5
Taxable imcome: 897,000 & 674,000
Tax rate: 20% & 22%
Current tax payalbe: 179,400 & 148,280
DTL (31/12/x0): -46,800 (18%)
DTL (31/12/x1): -15,400 (20%)
DTL (31/12/x1): 17,380
Dr Tax expense: 210,800
DR DTL: -31,400
Cr Tax payable: 179,400

Problem 11.6
Tax loss: -676,000
Tax rate: 22%
Current tax payable: 0
Tax Loss carryforward: -148,720
TTD: 17,380
Dr Deferred tax asset: 17,380
Dr Tax expense: 15,400
Cr DTL: 32,780

Problem 11.7
DTLL 58,000 (20%) & 57,200 (22%)
Part (2)
Dr Tax expense: 173,440
Dr DTL: 800
C tax payable: 174,240
Part (3): Dr DTL: 800
DR DTA: 57,200
Cr Tax credit (negative tax expense): 58,000

Problem 11,8
Ignored: development costs
Taxable income: 590,000 x20%  Tax payable: 118,000
TTD: 1,030,000
DTD: 90,000
 DTL: 188,000 (31/12/x3) (tax rate: 20%)
 DTL 31/12/x2: 121,000 (22%)
 Dr tax expense: 185,000
Cr tax payable 118,000
Cr DTL: 67,000

Problem 11.9
Taxable income: 1,246,000
TTD: 64,000 & 128,000  Diff of TTD = 64,000
DTL (31/12/x0): 11250 (18%)
DTL (31/12/x1): 21,760 (17%)
Change in DTL: 64,000 -11,520 – 21,760 = 10,240

Problem 11.10
Dr Tax expense: 800,000 & 400,000
Cr Current tax liablity: 800,000 & 400,000

TTD: 4,000,000 & 2,000,000