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:

Job Evaluation System

A method used by organizations to determine the value of a job in relation to other jobs within the organization, often influencing pay and grade.

Factor Definition

The process of identifying and defining the elements or criteria that are important for evaluating or measuring something.

Compensable Factor

A criteria used in job evaluation to determine the value of a job and its appropriate compensation.

Pay Grade

A classification system that defines the range of pay rates for different levels of jobs within an organization based on the job's relative value or complexity.