P Ltd.’s profit before tax for the year ended 31 December 2020 amounted to 80 000 Included in this profit is an income of N$12 000 that was received in 2019
but accruing in 2020. Tax authorities tax income at the earlier of receipt or
earning. Rate is 30%. What is the income tax expense and deferred tax for 31
December 2020? (2),

Among the items reported on John Corporation’s income statement for the year
ended December 31, 2020 are the following: Dividend income N$10,000
Penalties and related interest: N$18,000. How much are the temporary
differences for measuring deferred taxes?,

During the year, a company paid for research costs of N$ 10000 in cash and
immediately wrote the expense off to the statement of profit and loss and other
comprehensive income in terms of IAS 38. For tax purposes, these costs relate
to a capital asset. Assume the tax authority allows research costs to be
deducted over three years on a 50/30/20 basis. What is the tax base for this
transaction at the year- end? (1)