Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help Bilex Ltd acquired machinery at a purchase price of $26.6 million on April 1, 2020. Beyond the purchase price, the entity incurred sea
please help
Bilex Ltd acquired machinery at a purchase price of $26.6 million on April 1, 2020. Beyond the purchase price, the entity incurred sea freight charges, customs duties and installation tees of $3.9 million, 54.6 milion, and $0.3 million respectively. The entity also incurred $0.8 million to have the machinery delivered from the seaport to the factory, although 25% of the delivery fee was attributable to items unrelated to the machinery that were being transported at the same time Depreciation on the machinery is to be spread equally over an eight-year period, while capital allowances are to be granted at a rate of 15% on the reducing balance. There are other assets which give rise to temporary differences The entity reported taxable profits of $16 million and $34 million for the years to March 2021 and March 2022 respectively. The rate of income tax applicable to the entity is currently 35% REQUIRED: Calculate the applicabol lepreciation and capital allowances for both year. Determine the deferred tax balances at the end of both years. Determine the total tax expense for both years as would be shown in the statement of proht or los Show all relevant workings Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started