Calculate the amount current tax expense

AF314 Corporate Accounting
Flexi-School - 2019
Individual Assignment (20%)

1. 2.	Please list any references (books, articles, web-based material) you use at the end of your assignment in alphabetical order, using the referencing style seen in academic articles (i.e. with in text references and bibliography, as in the Harvard referencing style).

Requirements:
Question 1
The following data are taken from the trial balance of Bula Island Limited on 30 June 2018 with selected comparative information provided for 30 June 2017.

	2,100,000	2,100,000
Accumulated depreciation-Plant	787,500	525,000
Equipment	750,000	750,000
	225,000	150,000
	345,000	265,000
	355,000	245,000
	130,000	115,000
Interest payable	100,000	100,000

Additional Information

5. The tax rate at 30 June 2017 was 30%. On 15 June 2018, legislation was enacted decreasing the tax rate to 25% effective 1 July 2018.

Required:

There is not as yet any basis on which to determine how the work of the research centre will be allocated to each of the three divisions, as this will depend on priorities of the company overall and issues that arise in each division. The company headquarters provides approximately equal services to each of the divisions, but an immaterial amount to the research centre.

Neither the headquarters nor the research centre generates cash inflows.