a. Latifa made a loss of AED (3,500,000). However, Latifa received the following income and expenditure from its Foreign Permanent Establishments in three foreign jurisdictions, Country A, Country B and Country C: Country A Gross Income 7,500,000 AED) Expenditure B 3,400,000 C 3,700,000 2,000,000 2,550,000 1,750,000 AED) Tax rate 12% 10% 9% b. Latifa did not make an election to not consider income and expenditure from its Foreign Permanent Establishments. Latifa's (3,500,000) loss for 2018 does not include income and expenditure from these foreign jurisdictions. Instruction You are required to compute Latifa's taxable income and tax liability for years 2017 and 2018, showing all workings using excel.

a. Latifa made a loss of AED (3,500,000). However, Latifa received the following income and expenditure from its Foreign Permanent Establishments in three foreign jurisdictions, Country A, Country B and Country C: Country A Gross Income 7,500,000 AED) Expenditure B 3,400,000 C 3,700,000 2,000,000 2,550,000 1,750,000 AED) Tax rate 12% 10% 9% b. Latifa did not make an election to not consider income and expenditure from its Foreign Permanent Establishments. Latifa's (3,500,000) loss for 2018 does not include income and expenditure from these foreign jurisdictions. Instruction You are required to compute Latifa's taxable income and tax liability for years 2017 and 2018, showing all workings using excel.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Year 2018
a. Latifa made a loss of AED (3,500,000). However, Latifa received the
following income and expenditure from its Foreign Permanent Establishments
in three foreign jurisdictions, Country A, Country B and Country C:
Country
A
B
3,400,000
C
3,700,000
2,000,000
2,550,000
1,750,000
Gross
Income
7,500,000
(AED)
Expenditure
(AED)
Tax rate
12%
10%
9%
b. Latifa did not make an election to not consider income and expenditure from
its Foreign Permanent Establishments. Latifa's (3,500,000) loss for 2018 does
not include income and expenditure from these foreign jurisdictions.
Instruction
You are required to compute Latifa's taxable income and tax liability for years
2017 and 2018, showing all workings using excel.

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