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Best Store Limited is a profitable retailer of fishing reels and related accessories. It recently appointed a new managing director who is an expert on fishing but has limited experience in accounting. You are the accountant and the new managing director has asked you to prepare a draft set of financial statements for discussion with the rest of the board of directors.
REQUIRED:
Problem 1: Draft a MEMORANDUM to the managing director in which you include the following:
A) The deferred tax calculation using the Balance sheet approach
B) The current tax calculation
C) Disclosure in the AFS relating to the above.
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