A company's financial statements for the year to 31 March 2023 show a pre-tax profit of R2 430 000. This is after charging depreciation of R288 000. Wear and tear for the year for tax purposes is R135 000. Assuming that the rate of tax paid by the company is 28%, the required transfer to or from the company's deferred tax account is:
(2 Marks)

Question

A company's financial statements for the year to 31 March 2023 show a pre-tax profit of R2 430 000. This is after charging depreciation of R288 000. Wear and tear for the year for tax purposes is R135 000. Assuming that the rate of tax paid by the company is 28%, the required transfer to or from the company's deferred tax account is: 
 (2 Marks)

Accepted Answer

A transfer of R42 840 from the deferred tax account

Answer

A transfer of R42 840 to the deferred tax account

Answer

A transfer of R37 800 to the deferred tax account

Answer

A transfer of R37 800 from the deferred tax account

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A company's financial statements for the year to 31 March 2023 show a pre-tax pr...

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