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Rakaposhi Plc. bought an asset for $150,000. Entity uses straight line method to depreciate the asset...

Rakaposhi Plc. bought an asset for $150,000. Entity uses straight line method to depreciate the asset over 5 years time. There is no residual value. On the other hand tax authorities require entity to depreciate the asset as following: Year1 = 80,000, Year2 = 25,000, Year3 = 20,000, Year4 = 15,000, and Year5 = 10,000.
If the tax rate is 20%.
Assume that the accounting profit before tax for the years Year1 to Year5 is $60,000
Calculate the current tax and deferred tax amount to be recognized in SPL and SFP for five years.

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ekkarill92 answered 2 years ago
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