Abe commenced trading on 1 September 2020. The tax adjusted trading profit for his first two accounting periods is as follows: Accounting period Tax adjusted trading profit £ Ten months ended 30 June 2021 15,720 26,340 Year ended 30 June 2022 On what amount of trading profit will Abe be assessed for the tax year 2021-227 £26,340 £20,110 £24,471 £15,720

Abe commenced trading on 1 September 2020. The tax adjusted trading profit for his first two accounting periods is as follows: Accounting period Tax adjusted trading profit £ Ten months ended 30 June 2021 15,720 26,340 Year ended 30 June 2022 On what amount of trading profit will Abe be assessed for the tax year 2021-227 £26,340 £20,110 £24,471 £15,720

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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Concept explainers

Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.

Question

Abe commenced trading on 1 September 2020. The tax adjusted trading profit for his first two accounting periods is as follows:
Accounting period
Tax adjusted trading profit
Ten months ended 30 June 2021
£
15,720
26,340
Year ended 30 June 2022
On what amount of trading profit will Abe be assessed for the tax year 2021-22?
£26,340
£20,110
£24,471
£15,720

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