Question $3$

The company sold goods for $1500$ which were taxed in the period in which the

sales transaction took place. The company recognized trade receivables of $1500$

on the transaction date, but at year$-$end it concluded that a doubtful debt

allowance of $500$ was needed. As a result, in the statements of financial position,

the company presents a trade receivable of $1000.$ The income tax rate is $40\%.$

What is the tax base of the trade receivable?

$1500$

$500$

Zero