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Journal entryAdvancedPublished

Question · Dividends and withholding taxes

Cardelle recognises a dividend of 700,000 as a liability. Under the legislation in the case, the distribution requires it to pay additional tax of 6% of the dividend; the distributed profits come from its operations. Record the entry for the additional tax.

Dividend recognised
700,000
Additional tax (% of the dividend)
6 %
Your answer
  1. Line 1

    Account Current tax expense

  2. Line 2

    Account Current tax liability

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