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a) Explain by giving examples the causes of the differences between taxable income and accounting income ( 5 Marks) b) Dolphin Company Limited's tax computation
a) Explain by giving examples the causes of the differences between taxable income and accounting income ( 5 Marks) b) Dolphin Company Limited's tax computation for the year 2015 included the following; Again on disposal of an asset of sh.50,000/=was included in the Income for the year and taxed Accrued expenses for amounting sh.30,000/= were deducted from Income for the year before tax Taxable Income as per Tax Return for the year 2015 was Sh.100,000/= and the tax rate was 35% Required a) Determine if the gain on disposal of an asset and accrued expenses caused temporary differences. Explain why? (2 Marks) b) Classify each item as deductible or taxable and explain why (2 Marks) c) Prepare the following 1) Reconciliation of Taxable income and Accounting Income for the year and compute Income taxes payable (2 Marks) 2) Schedule temporary differences and record income taxes for the year (2 Marks) 3) show the how amounts to be reported in the balance sheet and Income Statements (2 Marks)
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