The following information relates to Newtown Limited for the year ended 30 June 2015. Accounting profit before income tax (after all expenses have been included) $250000. Fines and penalties (not tax deductible) $11000. Depreciation of plant (accounting) $40000. Depreciation of plant (tax) $ 90000. Long - service leave expense (not a tax deduction until the leave is paid) $24000. Income tax rate 30%. No employee has been paid long - service leave in the current year. On the basis of this information the current tax liability is:
The following information relates to Newtown Limited for the year ended 30 June 2015. Accounting profit before income tax (after all expenses have been included) $250000. Fines and penalties (not tax deductible) $11000. Depreciation of plant (accounting) $40000. Depreciation of plant (tax) $ 90000. Long - service leave expense (not a tax deduction until the leave is paid) $24000. Income tax rate 30%. No employee has been paid long - service leave in the current year. On the basis of this information the current tax liability is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![The following information relates to Newtown Limited for the year ended 30 June 2015.
Accounting profit before income tax (after all expenses have been included) $250000.
Fines and penalties (not tax deductible) $11000.
Depreciation of plant (accounting) $40000.
Depreciation of plant (tax) $ 90000.
Long - service leave expense (not a tax deduction until the leave is paid) $24000.
Income tax rate 30%.
No employee has been paid long - service leave in the current year. On the basis of this information the current tax liability is:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fab665449-a51e-4bf1-94a6-15cb21da90a8%2F4964358f-553a-4c6b-9d67-350c6f9a4a56%2Fs86sfn8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following information relates to Newtown Limited for the year ended 30 June 2015.
Accounting profit before income tax (after all expenses have been included) $250000.
Fines and penalties (not tax deductible) $11000.
Depreciation of plant (accounting) $40000.
Depreciation of plant (tax) $ 90000.
Long - service leave expense (not a tax deduction until the leave is paid) $24000.
Income tax rate 30%.
No employee has been paid long - service leave in the current year. On the basis of this information the current tax liability is:
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