ABC COMPANY Income Statement shows $ 297,500 profit for the year 2019. The following information are provided to arrive the taxable income. The opening inventory is undervalued by $ 7,500. Provision for bad debts of $ 4,000 has not been included to calculate the above profit. The firm did not record $ 5,000 dividend income from equity investment. The depreciation of a permanent building cost $ 200,000 has been calculated at 5%. A vehicle was purchased for $ 10,000 for official use and it is recorded as an expenses. The firm incurred advertisement expenses of $ 27,000. However, the tax authority declared $ 12,000 as non-deductible for this year. Travel expenses was $ 3,800 out of which $ 3,000 is relevant for business Calculate the taxable profit and the tax liability of the firm for the year 2019-20
ABC COMPANY Income Statement shows $ 297,500 profit for the year 2019. The following information are provided to arrive the taxable income.
The opening inventory is undervalued by $ 7,500.
Provision for
The firm did not record $ 5,000 dividend income from equity investment.
The
A vehicle was purchased for $ 10,000 for official use and it is recorded as an expenses.
The firm incurred advertisement expenses of $ 27,000. However, the tax authority declared $ 12,000 as non-deductible for this year.
Travel expenses was $ 3,800 out of which $ 3,000 is relevant for business
Calculate the taxable profit and the tax liability of the firm for the year 2019-20
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