Company AA provides the following financial information at the accounting year-end 31/12/2022: Sales Revenue equals £50,25050,250 and Total Expenses equal £23,00023,000. From the total amount of expenses, £12,60012,600 correspond to penalties. The statutory tax rate is 20%20%. Considering this information, which of the following statements is true? a. There exists a permanent difference and current tax expense equals £7,9707,970. b. The current tax expense amounts to £5,4505,450. C. The accounting profit before tax is £39,85039,850. d. None of the answers is true.
Company AA provides the following financial information at the accounting year-end 31/12/2022: Sales Revenue equals £50,25050,250 and Total Expenses equal £23,00023,000. From the total amount of expenses, £12,60012,600 correspond to penalties. The statutory tax rate is 20%20%. Considering this information, which of the following statements is true? a. There exists a permanent difference and current tax expense equals £7,9707,970. b. The current tax expense amounts to £5,4505,450. C. The accounting profit before tax is £39,85039,850. d. None of the answers is true.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 14P
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Kk.74.
Transcribed Image Text:Company AA provides the following financial information at the accounting year-end 31/12/2022: Sales Revenue equals
£50,25050,250 and Total Expenses equal £23,00023,000. From the total amount of expenses, £12,60012,600 correspond
to penalties. The statutory tax rate is 20%20%. Considering this information, which of the following statements is true?
a.
There exists a permanent difference and current tax expense equals £7,9707,970.
b.
The current tax expense amounts to £5,4505,450.
C.
The accounting profit before tax is £39,85039,850.
d.
None of the answers is true.
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