Quorvane (accounting profit 6,000,000, applicable rate 25%) recognised non-deductible fines of 200,000 and received exempt dividends of 400,000; additional tax of 30,000 for the previous year is recognised in profit or loss. Its temporary differences are all covered by deferred tax at the same rate. Compute the tax expense expected at the end of the reconciliation.
- Accounting profit
- 6,000,000
- Applicable rate (%)
- 25 %
- Non-deductible fines
- 200,000
- Exempt dividends
- 400,000
- Additional tax for the previous year
- 30,000