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: a. - Legal fees of $723,000 are for expenses in respect of the recovery of debts. b. - The company made donations of $55,400 to a registered charity. c. - The bad debt expense is a percentage of debtors at year-end. d. - Foreign travel expense was for a trip by the marketing manager to meet with potential buyers. e. - The capital allowances have been calculated at $142,000 f. - The premium paid of $88,000 was on insurance for the business’ property. g. - There were acquisition expenses of $45,000 associated with the expansion of the business. What is Rattle Ltd.’s corporate tax liability? Question 11 Answer A. $677,750 B. $700,250 C. $710,250 D. $687,500.
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: a. - Legal fees of $723,000 are for expenses in respect of the recovery of debts. b. - The company made donations of $55,400 to a registered charity. c. - The bad debt expense is a percentage of debtors at year-end. d. - Foreign travel expense was for a trip by the marketing manager to meet with potential buyers. e. - The capital allowances have been calculated at $142,000 f. - The premium paid of $88,000 was on insurance for the business’ property. g. - There were acquisition expenses of $45,000 associated with the expansion of the business. What is Rattle Ltd.’s corporate tax liability? Question 11 Answer A. $677,750 B. $700,250 C. $710,250 D. $687,500.
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:
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:
a. - Legal fees of $723,000 are for expenses in respect of the recovery of debts.
b. - The company made donations of $55,400 to a registered charity.
c. - The bad debt expense is a percentage of debtors at year-end.
d. - Foreign travel expense was for a trip by the marketing manager to meet with potential buyers.
e. - The capital allowances have been calculated at $142,000
f. - The premium paid of $88,000 was on insurance for the business’ property.
g. - There were acquisition expenses of $45,000 associated with the expansion of the business.
What is Rattle Ltd.’s corporate tax liability?
Question 11 Answer
A.
$677,750
B.
$700,250
C.
$710,250
D.
$687,500.
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