1": Net profit of a company for the year 2021 was L.E. 170,000. So if you learn the following: 1. There are goods that cost L.E. 30,000, they were sold for L.E. 40,000 and neither the sales nor the costs (i.e. the net profit), were recorded among the sales. 2. The firm evaluates its ending inventory at cost or market prices which ever is less. This year the firm recorded these goods at 10% below their cost. (Their cost price was L.E. 16,000 and market price was L.E. 20,000). 3. The firm sells the products of a company in return for a 5% commission on sales, and the sales of this company during this year were L.E. 24,000. (Noting that the sales commission recorded in the books was L:E. 3,000). 4. The firm recorded among its expenses, 13,000 L.E. as a rent paid for building of the firm (noting that monthly rent is L.E. 1,000). 5. The firm recorded among its expenses, 18,000 L.E. as an advertising expense for the firms' campaign which started the first of July 2016 and which will last for three years. 6. The firm recorded among its expenses, 10,000 L.E. as provision for disputable taxes. 7. The company recorded the value of a land that it purchased this year as an expense (noting that the value of the land is L.E. 400,000). 8. Sales figure includes a sum of L.E. 4,000, which represents the value of goods withdrawn by the proprietor for his personal use. These goods were purchased and recorded for L.E. 2.000 Determination of Tax Base Net profit or losses according to income statement Add: 1- Expenses not allowed for tax purposes 2- Revenues recognized only for tax purposes Total Taxable profit (loss) Deduct: LE LE XX XX XX XX XX 1- Expenses not allowed for accounting income but deductible for tax purposes XX 2- Revenues recognized for accounting purposes but not taxable Deduct: Adjusted Net Profit (loss) 1- Contributions and Subsidies 2-Losses carried forward Tax Base Deduct: Exemptions Net Tax Base XX (XX) XX XX XX (XXX) XX XX XX