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Accounting
Please also explain the answer clearly, because it is important to me and i don't understand, thank you very much!!! <3
On 1 January 20X2 C Ltd had a credit balance brought forward on its Deferred Tax account of $1.5m. There was also an opening credit balance of $4,000 on its Income Tax Payable account, representing the remaining balance after settling the liability for the year ended 31 December 20X1. C Ltd made profits in 20X2 of $3m that are subject to a tax rate of 30%. The deferred tax provision required is estimated at $1.7m at 31 December 20X2.
Required: a) Calculate the current and deferred tax payable. b) Prepare the journal entries to record the tax expense for the year ended 31 December 20X2. c) Show how the tax liability of C Ltd will be presented in the Statement of Financial Position as at 31 December 20X2
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