In the first quarter, Ostelle SA (financial year = calendar year) earned a profit before tax of EUR 900,000 and recognised 207,000 of income tax expense, at the estimated annual effective rate of 23% (case data). At 30 June, year-to-date profit before tax is 2,000,000 and management revises the estimated annual effective rate to 26 % (case data, judgement). Calculate the year-to-date income tax expense at the revised rate and the income tax expense to be recognised in the second quarter (deferred tax excluded: case convention).
- Year-to-date profit before tax at 30 June
- 2,000,000
- Revised estimated annual effective rate (case data)
- 26 %
- Income tax expense already recognised in the first quarter
- 207,000