Blue Sky Inc

question 37

Essay

Blue Sky Inc. (BSI)is a public company that 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 two, $170,000 in quarter three, and $200,000 in quarter four. 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:

Workforce Requirements

The specific needs and qualifications an organization requires from its employees to successfully meet its objectives and goals.

HR Budgets

Refers to the financial planning specifically allocated for human resource activities, including recruitment, training, benefits, and compensation.

Forecast Quantitative

This involves using mathematical models and historical data to predict future events or trends based on quantitative analysis.

Operational Demand Estimates

Predictions about the future requirements for operations in terms of resources, time, and labor.