Question
Q3. Resident Bank fully owned by Sweden investors has the following selected items drawn from its accounting books (Amounts in Saudi Riyal) (1.5 Marks). Account
Q3. Resident Bank fully owned by Sweden investors has the following selected items drawn from its accounting books (Amounts in Saudi Riyal) (1.5 Marks).
| Account | Amount | Deductible | Non-deductible |
| Allowance For Loan Losses | 840,000 |
|
|
| Employees share in retirement fund. | 190,000 |
|
|
| Bad debt (written off) | 18,340 |
|
|
| Donations to the Help the Poor Organization (non-licensed in Saudi) |
11,350 |
|
|
| Depreciation for New computers purchased to be used on research and development | 35,100 |
|
|
| Old employees reunion party expenses | 3,000 |
|
|
| Bank share in retirement fund within the limit in the law. | 145,000 |
|
|
| Loss on denoted assets | 8,000 |
|
|
| Income tax paid to tax and zakat authority | 150,000 |
|
|
Required: check mark items in the table below either deductible or non-deductible under income tax law in the kingdom.
Answer:
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