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FINANCIAL ACCOUNTING
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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Nidal worked as General Manager of Golden Wings Company for 18 years that ended at the end of 2019, with a monthly salary of 6000 dinars. Nidal received the end-of- service gratuity on December 31, 2019 for his years of service in the company. The company pays an end-of-service gratuity equivalent to a month's salary for each year of the first five years of service, and an end-of-service gratuity equivalent to a month and a half's salary for each year of the five years of service. An end-of-service gratuity equivalent to two months' salary is paid for each of the following years of service, except for the last year (2019 AD), for which the company does not pay an end-of-service gratuity. Based on the previous data, the income tax payable on Nidal's end of service gratuity is _60,000 dinars _27000 dinars 5400 dinars _33,000 dinars _None of the above
Transcribed Image Text:Nidal worked as General Manager of Golden Wings Company for 18 years that ended at the end of 2019, with a monthly salary of 6000 dinars. Nidal received the end-of- service gratuity on December 31, 2019 for his years of service in the company. The company pays an end-of-service gratuity equivalent to a month's salary for each year of the first five years of service, and an end-of-service gratuity equivalent to a month and a half's salary for each year of the five years of service. An end-of-service gratuity equivalent to two months' salary is paid for each of the following years of service, except for the last year (2019 AD), for which the company does not pay an end-of-service gratuity. Based on the previous data, the income tax payable on Nidal's end of service gratuity is _60,000 dinars _27000 dinars 5400 dinars _33,000 dinars _None of the above
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