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Green Company is resident, for tax purposes, in Italy. Here is the income statement for 2019: INCOME STATEMENT cost of goods sold 58 86 sales
Green Company is resident, for tax purposes, in Italy. Here is the income statement for 2019: INCOME STATEMENT cost of goods sold 58 86 sales revenues Telephone expenses 10 10 Unrealized gain on trading securities Salaries/wages Board of Directors 12
The tax advisor is informed that the Board of Directors wages accrued during 2019, but will be paid during 2021.
The Italian laws are to be applied to compute Taxable Income. Income tax rate is 50%.
Compute the taxable income and the net profit for the year.
- telephone expenses are 80% deductible.
- salaries of BoD is only deductable if it is unpaid.
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