Gavrance has taxable profit of 1,500,000, taxed at the enacted rate of 25%. During the year, its deferred tax liability increases by 20,000 and its deferred tax asset by 8,000, both movements arising from items recognised in profit or loss. Compute current tax and the total tax expense in profit or loss.
- Taxable profit
- 1,500,000
- Enacted rate (%)
- 25 %
- Increase in deferred tax liability
- 20,000
- Increase in deferred tax asset
- 8,000