Question
Company BettyBoop SRL, a small microenterprise , asks you to compute its income tax payable by for the year 2019 . The trial balance is
Company BettyBoop SRL, a small microenterprise, asks you to compute its income tax payable by for the year 2019. The trial balance is shown below. The exchange rate was 5 lei/euro as at 31.12.2018. The company had 2 employees/quarter.
In the first quarter, the company bought a number of cash registers 20,000 lei.
From 2016 when it was a profit tax payer, the company reported a fiscal loss of 150,000 lei. In 2017, when it became a microenterprise, the company reported an accounting loss of 30,000 lei.
Amounts are presented for EACH quarter separately.
| Q1 | Q2 |
Sales of goods | 1,980,000 | 1,800,000 |
Sales of services | 216,000 | 540,000 |
Account 709 (debit side) | -22,500 | -31,500 |
Inventory variation (account 711) | 81,000 | 36,000 |
Reversal of impairment for fixed assets | 9,000 | 54,000 |
Income from interest | 432,000 | 274,500 |
Total revenue | 2,695,500 | 2,673,000 |
Cost of goods and services sold | 2,412,000 | 1,608,000 |
Salary expense | 270,000 | 270,000 |
Social expenses | 8,000 | 0 |
Protocol expense | 3,000 | 0 |
Sponsorship | 18,000 | 0 |
Total expenses | 2,711,000 | 1,878,000 |
Accounting profit/loss | -15,500 | 795,000 |
Compute the tax payable for the first quarter.
Compute the tax payable for the second quarter.
Explain briefly when it is better off for a company to pay income tax and not profit tax.
THis is under romanian taxation
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