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2. For the year ended 31 July 2020, Norman Co made operating profits before tax of $1,800,000. The following details are also available: a)
2. For the year ended 31 July 2020, Norman Co made operating profits before tax of $1,800,000. The following details are also available: a) The balance on the deferred taxation liability account before making any adjustments for the item listed in this paragraph was $100,000. At 31 July 2020, Norman Co had taxable temporary differences of $260,000. b) The estimated tax on profits for the year ended 31 July 2019 was $84,000, but tax has now been agreed and fully paid at $80,000. c) Tax on profit for the year to 31 July 2020 is payable on 1 May 2021. The applicable tax rate is 30%. Required: Present the statement of profit or loss and the statement of financial position extract for the year ended 31 July 2020.
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