a)Pacman Ltd commenced business in 2015. For the year-ending 31/12/2016, they incur a loss of...
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Accounting
a)Pacman Ltd commenced business in 2015. For the year-ending 31/12/2016, they incur a loss of $2.2 million. It is not anticipated that there will be further losses as the company becomes more established in the market and will generate taxable profit in subsequent years.
Profits before tax for subsequent years are:
2017:$560,000
2018:$890,000
2019:$970, 000
There are no temporary differences between carrying value of assets or liabilities.
Tax rate is 30%.
Prepare journal entries for 2017, 2018 and 2019.
b) In which year will the company need to pay tax to the Tax Office?
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