Which of the following statements is/ are most likely to be correct?

I. Effective tax rate should be used to calculate the tax payable amount. 

II. Statutory tax rate is calculated as dividing income tax expense by income before tax. 

III. Deferred tax assets can be both current and non-current in financial reporting. 

IV. Permanent differences between financial reporting and tax reporting result in different income tax expense and tax payable amounts. 

a. I and II 

b. II and IV 

c. III only 

d. IV only

 

Which of the following statement is true regarding discontinued operation's reporting?

a. Gain or loss from discontinued operation must be presented before tax in the financial statements.

b.  Profit or loss from discontinued operation should only be reported in the final financial year of its operation.

c.  Assets and liabilities of the discontinued operation must be separately reported in the statement of financial position.

d. Gain or loss of the discontinued operation must be separately reported in the statement of comprehensive income.