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.

Question

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The Answer of 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.