Determine the deferred tax balances at the end of both years

Assignment Help Accounting Basics
Reference no: EM133091203

Question - HeeHoo Ltd acquired machinery at a purchase price of $36.9 million on April 1, 2019. Beyond the purchase price, the entity incurred shipping charges, customs duties, and installation fees of $3.8 million, $6.1 million, and $0.6 million respectively. The entity also incurred $0.8 million to have the machinery delivered from the seaport to the factory, although 20% of the delivery fee was attributable to items unrelated to the machinery that were being transported at the same time. Depreciation on the machinery is to be spread equally over an eight-year period, while capital allowances are to be granted at a rate of 15% on the reducing balance. There are no other assets which give rise to taxable temporary differences . The entity reported taxable profits of $69 million and $82 million for the years to April 2020 and April 2021 respectively . The rate of income tax applicable to the entity is currently 35%.

Required -

1. Calculate the applicable depreciation and capital allowances for both years.

2. Determine the deferred tax balances at the end of both years.

3. Determine the total tax expense for both years.

Reference no: EM133091203

Questions Cloud

Calculate the original and restated eps : The company had $6 million in 6% preference shares in issue during both years. Calculate the EPS for 2021. Calculate the original and restated EPS for 2020
Describe basic enzyme kinetics : Critically evaluate the pros and cons of using traditional organic chemistry versus biocatalysis for a large-scale process and Describe basic enzyme kinetics
What is the total impairment loss on trademark : A trademark for P2,000,000.The trademark has a remaining legal life of 8 years. What is the total impairment loss on trademark
Prepare selected organometallic complexes : Prepare selected organometallic complexes and employ them as homogeneous catalysts and prepare a concise account of previous work on a topic from a survey
Determine the deferred tax balances at the end of both years : HeeHoo Ltd acquired machinery at a purchase price of $36.9 million on April 1, 2019. Determine the deferred tax balances at the end of both years
What are the actions you would take : What are the actions you would take if a service had a negative contribution margin to improve organization performance
Describe the range of functions of metal ions in biological : Explain types and classes of metal ligand interactions in metalloenzymes and Classify the types of metalloproteins and co-factors that incorporate transition
Prepare a schedule of expected cash collections for April : February's sales totaled $280,000, and March's sales totaled $295,000. Prepare a schedule of expected cash collections for April
Synthesis of pharmaceuticals and natural products : Principles and strategies of stereoselective alkene functionalisation and Understand main principles in the use of enabling technologies and related industrial

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much was the selling price per share of the investment

Collected with .006 transaction tax on the amount of sale euivalent to P12,240. How much was the selling price per share of the investment sold?

  Prepare a cash distribution schedule

Door Company at december 31 has cash $48,000, noncash assets $240,000, Prepare a cash distribution schedule

  What accounts and amounts should be credited to record

The cost method is used in accounting for treasury shares. What accounts and amounts should be credited to record the issuance of the 3,000 shares?

  Calculate the amount of under applied overhead

The actual overhead incurred during the year was $2,800,000 and the amount charged to production was $2,400,000. Calculate the amount of Under/Over applied overhead and close the balance to Cost of Goods sold.

  Poplar corp comparative balance sheets included inventory

poplar corp. comparative balance sheets included inventory of 90200 at december 31 2011 and 70600 at december 31 2012.

  Sheldon corp reports regular taxable income of 150000 in

sheldon corp. reports regular taxable income of 150000 in the current year. its regular tax is 41750. sheldon takes

  Compute the ending inventory under fifo lifo and weighted

Egypt Co. uses a periodic inventory system.  88 units were sold. The following are the Beginning Inventory and Purchases made during the year. Compute the ending inventory under FIFO, LIFO and Weighted Average methods.

  What is the value of the policy

If the relevant interest rate is 10 percent for the first six years and 5.75% percent for all subsequent years, what is the value of the policy

  Prepare journal entry to record the issuance of the bonds

On January 1, 2018, Bochini Corporation sold a $10 million, 8.25 percent bond issue. Prepare the journal entry to record the issuance of the bonds

  Calculate the cost of the ending inventory

At the end of May, 1,450 pairs of shoes were in ending inventory. Calculate the cost of the ending inventory and the cost of the shoes sold during May

  How much money would bob have today

His beginning investment was $10000 and at the end of every year he invested $1000. How much money would Bob have today

  Describe how a business you have worked for was organized

Describe how a business you have worked for was organized

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd