The audited accounts of Rattle Limited for year-end December 31, 2013, show a profit of $2,400,000 after charging the following: Depreciation $380,000 Legal fees $723,000 Bad debts $67,000 Donations $55,400 Accrued interest $51,000 Foreign travel $75,000 Repair and maintenance $216,000 Premium on insurance $88,000 Other Information: - Legal fees of $723,000 are for expenses in respect of the recovery of debts. - The company made donations of $55,400 to a registered charity. -The bad debt expense is a percentage of debtors at year-end. - Foreign travel expense was for a trip by the marketing manager to meet with potential buyers. - The capital allowances have been calculated at $142,000 -The premium paid of $88,000 was on insurance for the business’ property. -There were acquisition expenses of $45,000 associated with the expansion of the business. What is Rattle Ltd.’s corporate tax liability? A.$710,250 B.$700,250 C.$687,500 D.$677,750
The audited accounts of Rattle Limited for year-end December 31, 2013, show a profit of $2,400,000 after charging the following: Depreciation $380,000 Legal fees $723,000 Bad debts $67,000 Donations $55,400 Accrued interest $51,000 Foreign travel $75,000 Repair and maintenance $216,000 Premium on insurance $88,000 Other Information: - Legal fees of $723,000 are for expenses in respect of the recovery of debts. - The company made donations of $55,400 to a registered charity. -The bad debt expense is a percentage of debtors at year-end. - Foreign travel expense was for a trip by the marketing manager to meet with potential buyers. - The capital allowances have been calculated at $142,000 -The premium paid of $88,000 was on insurance for the business’ property. -There were acquisition expenses of $45,000 associated with the expansion of the business. What is Rattle Ltd.’s corporate tax liability? A.$710,250 B.$700,250 C.$687,500 D.$677,750
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The audited accounts of Rattle Limited for year-end December 31, 2013, show a profit of $2,400,000 after charging the following:
|
|
$380,000 |
|
Legal fees |
$723,000 |
|
|
$67,000 |
|
Donations |
$55,400 |
|
Accrued interest |
$51,000 |
|
Foreign travel |
$75,000 |
|
Repair and maintenance |
$216,000 |
|
Premium on insurance |
$88,000 |
Other Information:
- - Legal fees of $723,000 are for expenses in respect of the recovery of debts.
- - The company made donations of $55,400 to a registered charity.
- -The bad debt expense is a percentage of debtors at year-end.
- - Foreign travel expense was for a trip by the marketing manager to meet with potential buyers.
- - The capital allowances have been calculated at $142,000
- -The premium paid of $88,000 was on insurance for the business’ property.
- -There were acquisition expenses of $45,000 associated with the expansion of the business.
What is Rattle Ltd.’s corporate tax liability?
A.$710,250
B.$700,250
C.$687,500
D.$677,750
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