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On 31 March 20X6, CPI had a credit balance brought forward on its deferred tax account of $642 000. There was also a credit balance on its corporate income tax account of $31 000 representing an overestimate of the tax charge for the year ended 31 March 20X5.
CPTs taxable profit for the year ended 31 March 20X6 was $946 000. CPTs directors estimated the deferred tax provision required at 31 March 20X6 to be $759 000 and the applicable income tax rate for the year to 31 March 20X6 as 22 per cent. Calculate the income tax expense that CPI will charge in its income statement for the year ended 31 March 20X6, as required by IAS 12, Income Taxes.