The Rastelle group reports consolidated accounting profit of 8,000,000; applicable rate used 25% (the parent's domestic rate, case data). This profit includes: 2,000,000 earned by a subsidiary taxed at 15%; a tax loss of 600,000 of another subsidiary (same rate as the parent), with no deferred tax asset; non-deductible expenses of 120,000. Compute the consolidated tax expense resulting from the reconciliation.
- Consolidated accounting profit
- 8,000,000
- Applicable rate (%)
- 25 %
- Foreign subsidiary's profit
- 2,000,000
- Foreign subsidiary's rate (%)
- 15 %
- Unrecognised tax loss
- 600,000
- Non-deductible expenses
- 120,000