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Kindly assist me with this question
MasMart had assets at 1 February 2002 with a carrying value in the financial statements of P600,000 and a tax written down value of 400,000. Accounting Depreciation was charged on the assets 10% reducing balance. WDAs are available at 25% also on the reducing balance basis. On 31 January 2004 MasMart sold all the assets for P500,000. In year ended 31 January 2004 MasMart had Profit Before Tax of P2,000,000. This was after the deduction of entertainment expenses that were disallowable for tax purposes worth P30,000. In addition, MasMart had P200,000 of income exempt from taxation. Tax is Payable at 22%. Calculate the Tax Payable for the year ended 31 January 2004
Hi,
I’ll gladly assist you with it if you show that you have attempted the question first, so that we can identify where you are going wrong. Doing it this way works much better for your knowledge as opposed to be just showing you the answer.
If you’ve done the tax paper then you will be able to do it easily but if you haven’t then you will find it very tough and I’d recommend that you not worry about it as you won’t have to do this in the FR exam.
Thanks
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