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Dear Tutor, I am very confused about this answer of question, shown as follows:
…………………………………………………………..ALtd…….BLtd…….CLtd……..DLtd…….ELtd
Taxable Total Profits ………………………………Nil……20,000…..83,000….96,000…375,000
corporation tax at 20%…………………………………….. 4,000
at 21%………………………………………………………………………….17,430….20,160….78,750
Less: 1/400x(300,000-83,000)………………………………………….(520)
1/400X(300,000-96,000)………………………………………………………………(510)
Corporation tax liability……………………………Nil ……4,000…..17,463…..20,550….78,750
what I calculate is that 17,430-520=16,910, but answer is 17,463, would you please help me what reason?
many thanksLook at answer to this same question just a few questions before yours! I think you have written in the wrong number for the marginal relief for C Ltd however!! The 17,463 is just an updating error where last year’s total has not been changed but the individual figures in the answer are correct!
thank you for your response but i am still confused , the equation like this 17,430-542+575=17463, would you tell me where the number 575 come from?
the question didn’t provide any previous year information.
many thanksThere is no 575! The error is simply that the total figure is wrong (that figure being from last year’s course notes). The answer as you should have computed is simply 17,430 – 542 = 16,888
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