Reference no: EM132513227
Spotless limited is a company operating in the household cleaning industry. The following information has been presented to you:
Extract from Balance Sheet as 31 December 2018
2018 2017
Property, plant and equipment ? R355 000
Expenses prepaid 10,000 0
Income tax received in advance(taxable in the year of receipt) 28,000 15, 000
ADDITIONAL INFORMATION
- The tax base of the property, plant and equipment balance at 31 December 2017 was R290 000.
- During 2018 depreciation was R35 000 and wear and tear allowed was R25 000.
There was no other movement of property, plant and equiment during 2018.
- Profit before tax is R300 000
- Dividend income of R5 000 was earned during 2018.
- There are no other temporary or permanent differences other than those evident from the information provided.
- The normal income tax rate is 30%
Required:
Question 1: Calculate the current income tax and deferred tax for the year ended 31 Decemeber 2018.
Question 2: Journalise the current and deferred income tax adjustments for the year ended 31 Decemeber 2018.
Question 3: Disclose the Taxation note as at 31 December 2018 in accordance with International Financial Reporting Standards (IFRS).