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At the beginning of its fiscal year, XYZ Company purchased an asset for QR 600,000 with a useful life of 4 years. The asset is

At the beginning of its fiscal year, XYZ Company purchased an asset for QR 600,000 with a useful life of 4 years. The asset is depreciated using the straight-line method for book purposes but the double-declining balance (50%) for tax purposes.

Assume that revenue is QR 800,000. The tax rate for XYZ Company is 30%.

Required:

  1. Calculate the tax expense and the taxes payable for XYZ Company.

Complete the Journal entry for the taxes calculated above.

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