Kervadin's 20X5 income tax note: current tax before use of losses 900,000; benefit from prior losses never recognised, used to reduce current tax 150,000; release of excess current tax for 20X4 20,000; deferred tax expense on temporary differences originating in the year 60,000; deferred tax income from a rate cut 35,000; write-down of a deferred tax asset 45,000. Compute tax expense.
- Current tax before use of losses
- 900,000
- Benefit from unrecognised losses
- 150,000
- Release of 20X4 current tax
- 20,000
- Deferred tax on differences originating in the year
- 60,000
- Income from the rate cut
- 35,000
- Write-down of a deferred tax asset
- 45,000