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why the answer is 32,500 instead of 30,500 isn't 32,500 total tax expense and 30,500 is current tax expense? 10. Based on the following information,
why the answer is 32,500 instead of 30,500 isn't 32,500 total tax expense and 30,500 is current tax expense? 10. Based on the following information, determine the current tax expense. (REFER TO SLIDE:9) Tax rate 25% Profit (accounting) for 2019 = SR150,000 SR20,000 dividend income is tax exempt Current Year closing taxable temporary differences are SR43,000 Prior Year taxable temporary differences were SR35,000 SR32,500 (50,000-20,000=130,000-8000=122,000*25%=30,500+ 8000*25% =2000) b. SR20,500 SR37,500 d. SR30,500 a. C. Exercise Based on the following information, calculate the current tax expense and deferred tax expense. Tax rate 25% Profit (accounting) for 2019 = SR150,000 SR20,000 dividend income is tax exempt Current Year closing taxable temporary differences are SR43,000 Prior Year taxable temporary differences were SR35,000 SOLUTION Taxable income Profit Before Tax +/-Permanent Differences: Less nontaxable dividend income +/- Temporary Differences: Less Temporary Differences (35,000 - 43,000) Taxable profit Current tax expense/liability (122,000 25%) Deferred Tax expense (8000-25%) Tax Expense 150,000 (20,000) 130,000 (8,000) 122,000 30,500 2,000 32,500 9
isn't 32,500 total tax expense and 30,500 is current tax expense?
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