What is the title that AASB 112/IAS 12 Income Taxes uses to describe differences between the carrying amount of an asset or liability in the statement of financial position and the tax base of the asset or liability?

a.

permanent differences.

b.

timing differences.

c.

carrying amount differences.

d.

temporary differences.

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Question 17

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TI Ltd has the following tax balances at the end of its first financial period: current tax liability $12 000, deferred tax liability $15 000, and deferred tax asset $18 000. There is no tax on items of other comprehensive income. What recognise as income tax expense in its first financial period?

a.

$30 000 [= $12 000 + $18 000]

b.

$27 000 [= $12 000 + $15 000]

c.

$15 000 [= $12 000 $15 000 + $18 000]

d.

$9000 [= $12 000 + $15 000 $18 000]

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Question 18

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AASB 112/IAS 12 Income Taxes defines current tax as:

a.

the amount of income tax recognised that is attributable to the transactions and events of the current period.

b.

the amount of income taxes payable (recoverable) classified as a current liability (current asset).

c.

the amount of income taxes payable classified as a current liability.

d.

the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period.

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Question 19

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AASB 112/IAS 12 Income Taxes defines accounting profit as:

a.

profit or loss and other comprehensive income for a period before deducting tax expense

b.

profit or loss for a period after deducting tax expense

c.

profit or loss for a period before deducting tax expense

d.

profit or loss and other comprehensive income for a period after deducting tax expense

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Question 20

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Carmen Limited has an accounting profit before tax of $240 000. All of the following items have been included in the accounting profit: depreciation of equipment $30 000 (tax deductible depreciation is $40 000); entertainment expenses $10 000 (non-deductible for tax purposes); long service leave expense $80 000 (long service leave paid is $50 000). The tax rate is 30%. What is the taxable profit for the period?

a.

$320 000.

b.

$310 000.

c.

$270 000.

d.

$290 000.