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A company buys equipment for Sh. 50,000,000 on 1st January 2001 and depreciates it on a straight line basis over its expected useful life

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A company buys equipment for Sh. 50,000,000 on 1st January 2001 and depreciates it on a straight line basis over its expected useful life of five years. For tax purpose, the equipment is depreciated at 25% on straight line basis. Accounting profit before tax for the years 2001 to 2005 is Sh. 20,000,000 per annum. Tax rate is 40% Required: Extract of Statement of financial position (Showing deferred tax and current tax) for the years ending 31st December 2001 to 2005 (11 marks)

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