The following information is available for Pronghorn plc for 2022. 1. Excess of tax depreciation over book depreciation, £38,400. This £38,400 difference will reverse equally over the years 2023-2026. Deferral, for book purposes, of £20,800 of rent received in advance. The rent will be recorded as revenue in 2023. Pretax financial income, £284,000. There are no deferred taxes at the beginning of 2022. Tax rate for all years, 40%. 2. 3. 4. (a) Your Answer Correct Answer (Used) Compute taxable income for 2022. Taxable income £ 266,400
The following information is available for Pronghorn plc for 2022. 1. Excess of tax depreciation over book depreciation, £38,400. This £38,400 difference will reverse equally over the years 2023-2026. Deferral, for book purposes, of £20,800 of rent received in advance. The rent will be recorded as revenue in 2023. Pretax financial income, £284,000. There are no deferred taxes at the beginning of 2022. Tax rate for all years, 40%. 2. 3. 4. (a) Your Answer Correct Answer (Used) Compute taxable income for 2022. Taxable income £ 266,400
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 47P
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