Question
Sammex purchased medical equipment for $65 000 on 1 Jan 2002. A useful life of 5 years and straight line basis are assumed for depreciation
Sammex purchased medical equipment for $65 000 on 1 Jan 2002. A useful life of 5 years and straight line basis are assumed for depreciation purposes. For tax purposes tax losses may be carried back against taxable income from the previous 5 years and the medical equipment is depreciated straight line at 25% per annum. For year ended 2001, the entity's taxble profit was $30,000. The tax rate is 40%. Compute the deferred tax and current tax in years 2002 to 2006 of the purchase of the equipment assuming zero profit/ losses after depreciation in years 2002 to 2006
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