Ex. 1										Ex. 4						
Adjustments to accounting profit (AP):										Temporal difference (TD)			" 1,000 "			
	Add back adj.	Deduct adj.								Tax rates:						
(1)		" (20,000)"										 TP 	 =< 	" 100,000 "	=>	20%
(2)	" 5,000 "									" 100,000 "	 > 	 TP 	 =< 	" 300,000 "	=>	25%
(3)*	 500 									" 300,000 "	 > 	 TP 	 =< 	" 500,000 "	=>	30%
(4)	" 35,000 "	" (43,000)"								" 500,000 "	 > 	 TP 	 =< 	" 650,000 "	=>	35%
	" 40,500 "	" (63,000)"														
										TP	650000	 => 	 Tax payable: 			
AP	" 150,000 "												" 20,000 "			
Adjustments	" (22,500)"												" 50,000 "			
Taxable profit	" 127,500 "												" 60,000 "			
													" 52,500 "			
Tax payable	" 19,125 "												" 182,500 "			
																
* Derecognition of AR if bad debt provision is used:											Average tax rate:					
Db Provision											28.08%					
Cr AR																
Because there was increase in bad debt provision => corresponding aged AR were not derecognized											Deferred tax liability:					
											 280.77 					
Ex. 2																
as per 31/3/X8																
	estimate of Taxable profit (TP)			" 100,000 "	 => 	 estimate of Tax payable 			" 20,000 "							
	Db. Tax expense		" 20,000 "													
	Cr Tax payable		" 20,000 "													
																
as per 1/6/X8																
	actual Taxable profit		" 95,000 "	 => 	 actual Tax payable 			" 19,000 "								
	Cr. Tax expense		" 1,000 "													
	Db Tax payable		" 1,000 "													
																
as per 15/9/X8																
	payment of tax payable															
	Db. Tax payable		" 19,000 "													
	Cr Bank		" 19,000 "													
																
																
Ex. 3																
Tax loss	" 9,000 "															
Carryback of tax loss - 3 years in the past:																
	1617	"TP=7,000, tax rate = 18%"														
	1516	"TP=5,000, tax rate = 20%"														
	1415	"TP=3,000, tax rate = 17%"														
																
Scenario a:																
	Order of years in the past doesn't matter => first take years with highest %															
	1	"TP=5,000, tax rate = 20%"		=>	1000											
	2	"TP=7,000, tax rate = 18%"		=>	720											
					" 1,720 "											
Scenario b:																
	First most recent years should be used															
	1	"TP=7,000, tax rate = 18%"		=>	1260											
	2	"TP=5,000, tax rate = 20%"		=>	400											
					" 1,660 "