Blue Sky Inc

question 35

Essay

Blue Sky Inc.(BSI)is a public company which is required to file interim statements on a quarterly basis.BSI has a loss carryforward available of $150,000 which has not been recognized as a deferred tax asset.In the first interim period,the company earns $80,000,and it is expected that it will earn the following amounts in each of the next three quarters: $50,000 in quarter 2,$170,000 in quarter 3 and $200,000 in quarter 4.The company pays a tax rate of 30%,excluding any loss carryforwards.
Required:
Calculate the tax expense for each interim period assuming that the company follows the requirements of IAS 34.

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Definitions:

Nonpreferred Workers

Employees or workforce segments considered less favorable for hiring, often due to biases or stereotypes, not necessarily related to their skills or abilities.

Wage Rate

An alternative expression for the compensation paid to an employee per unit of time worked, typically measured on an hourly basis.

Employment

The state of having paid work or the act of providing jobs for workers, contributing to an economy's labor force.

Temporary Assistance for Needy Families

A government aid program in the U.S. aimed at aiding low-income families to reach financial independence through monetary support and assistance services.