Crash Bash LTD commenced trading on 1 February 2013
Crash Bash LTD prepared its first accounts for the nine-month period ended 31 October 2013
TTP = 338,510
FII = 40,000
Augmented profit = 378,510
Question: Calculate corporation tax liability for the nine-month period ended 31 October 2013?
According to the solution, the upper and lower limits are adjusted as following:
Upper limit 1,500,000 * 9/12 *1/2 = 562,500
Lower limit 300,000 * 9/12 *1/2 = 112,500
Could you please explain to me why the upper and lower limits are multiplied by ½?
Ask the Tutor ACCA TX-UK
Question 55- Crash Bash LTD - calculation of tax liability
Because there would must be an associate company so the limits will be reduced read the question again
Thank you so much for your explanation. It all makes sense now.
You are most welcome :)
Correct - there must indeed be an associated company and hence divide the limits by 2.
Sign in to reply to this topic.