Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Decision Makers

Authors: Peter Atrill, Eddie McLaney

10th Edition

1292409185, 9781292409184

More Books

Students also viewed these Accounting questions

Question

Whats involved in listening?

Answered: 1 week ago