Compare the income tax expense and the balance sheet liability for the year 2014 assuming that: The actual tax paid for the year 2013 was £90,000. The actual tax paid for the year 2013 was £110,000.
Compare the income tax expense and the balance sheet liability for the year 2014 assuming that: The actual tax paid for the year 2013 was £90,000. The actual tax paid for the year 2013 was £110,000.
Chapter2: The Domestic And International Financial Marketplace
Section2.A: Taxes
Problem 2P
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1.
During the year ended 31/12/2013, A Ltd had estimated the corporation tax for the year to be £100,000. The amount was still outstanding as at 31/12/13. During the year ended 2014, on 30th June the actual amount payable was agreed with the tax authorities and eventually paid. Meanwhile during the year 2014 the company paid additional investment taxes of £80,000. As at the end of the year the company estimated that the payable for year 2014 will be £120,000.
Required:
Compare the income tax expense and the balance sheet liability for the year 2014 assuming that:
- The actual tax paid for the year 2013 was £90,000.
- The actual tax paid for the year 2013 was £110,000.
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