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Fish Limited is a company operating in the food industry. The following information has been presented to you:

FISH LIMITED

EXTRACT FROM STATEMENT OF FINANCIAL POSITION

AT $31$ DECEMBER $20$X$3$

Property, plant and equipment

Expenses prepaid $($this is allowed as a deduction for tax purposes in $20$X$3)$ Revenue received in advance $($taxable in the year of receipt$)$

Additional information:

$20$X$320$X$2$ CC

$?1000028000$

$355000015000$

The tax base of the property, plant and equipment balance at $31$ December $20$X$2$ was C$290000.$

During $20$X$3$ depreciation was C$35000$ and wear and tear allowed was C$25000.$ There was no

other movement of property, plant and equipment during $20$X$3.$

Profit before tax is C$300000.$

Dividend income of C$5000$ was earned during $20$X$3.$

There are no other temporary or non$-$temporary differences other than those evident from the

information provided.

The corporate income tax rate is $30\%.$

$52$ Chapter $6$

GAAP: Graded Questions Taxation: Deferred taxation

Required:

a$)$ Calculate the deferred income tax balance at $31$ December $20$X$2$ and $31$ December $20$X$3.$

b$)$ Calculate the current income tax for the year ended $31$ December $20$X$3.$

c$)$ Journalise the current and deferred income tax adjustments for the year ended $31$ December $20$X$3.$

d$)$ Prepare the deferred tax note to the statement of financial position at $31$ December $20$X$3$ in accordance with International Financial Reporting Standards.

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