(1 Mark)

On 1 January 2021, a company which prepares financial statements to 31 December each year buys an item of equipment for R500 000. Useful life is estimated to be 6 years, and residual value is expected to be approximately R37 500. The company uses the diminishing balance method of depreciation at a rate of 35% per annum. To the nearest rand, the depreciation of this item for the year to 31 December 2022 would be:

(1 Mark)

(1 Mark)

(1 Mark)

Unpaid expenses are shown in a company's statement of financial position as a current liability of R60 000. These expenses have already been deducted when computing accounting profit but will not be deducted for tax purposes until they are paid. Assuming that the company pays tax at 27%, the resulting deferred tax asset or liability is:

A company's estimate of its current tax liability for the year to 31 December 2021 differed from the actual tax liability by R15 000. This resulted in a credit balance of R15 000 being shown in the company's trial balance as at 31 December 2021. The current tax liability for the year to 31 December 2022 is estimated to be R345 000.

The current tax expense which should be shown in the statement of comprehensive income for the year to 31 December 2022 is:

(2 Marks)

(1 Mark)

(2 Marks)