Exco plc’s accountants have prepared the following IFRS income statement summary for the year ended 31 December 20X1: Amounts in £ Year 20X1 Total revenue 100,000 Total expenses 70,000 * Profit before tax 30,000 * includes a non-deductible expense (see below) The following information is also available: - Exco plc’s expenses include £10,000 for a penalty charge which is not tax-deductible. - The statutory tax rate on corporate profits is 20%. The current tax (expense) reported for the year ended 31 December 20X1 is: a. £3,000 b. £6,000 c. £8,000 d. £9,000 e. £13,000
Exco plc’s accountants have prepared the following IFRS income statement summary for the year ended 31 December 20X1: Amounts in £ Year 20X1 Total revenue 100,000 Total expenses 70,000 * Profit before tax 30,000 * includes a non-deductible expense (see below) The following information is also available: - Exco plc’s expenses include £10,000 for a penalty charge which is not tax-deductible. - The statutory tax rate on corporate profits is 20%. The current tax (expense) reported for the year ended 31 December 20X1 is: a. £3,000 b. £6,000 c. £8,000 d. £9,000 e. £13,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Exco plc’s accountants have prepared the following IFRS income statement summary for the year ended 31 December 20X1:
|
Amounts in £ |
Year 20X1 |
|
Total revenue |
100,000 |
|
Total expenses |
70,000 * |
|
Profit before tax |
30,000 |
* includes a non-deductible expense (see below)
The following information is also available:
- Exco plc’s expenses include £10,000 for a penalty charge which is not tax-deductible.
- The statutory tax rate on corporate profits is 20%.
The current tax (expense) reported for the year ended 31 December 20X1 is:
a.
£3,000
b.
£6,000
c.
£8,000
d.
£9,000
e.
£13,000
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