Questions 3

QUESTION 3 TAX ACCOUNTING ISSUES 10 Marks Audiuona inormation's: 1. Sales Income includes "Sale of Old Investments K 500,000 2. Repairs includes K30,000 related with second hand equipment purchase. (ignore depreciation) 3. Accelerated Depreciation 20% is allowed for Machinery worth K 140,000 as per IT regulations 4. Previous Year's Losses K 40,000 5. Advertisement includes Overseas Market Promotion Expenditure K 50,000 Required: (a) Prepare Reconciliation Statement to find out taxable Income ( 8 Marks) (b) Calculate the Net Tax Payable by the company. ( 2 Marks)