Suppose that the income tax rate is 16% and income tax liability for the current year is 10400. The sales revenue is

a.

$77,200

b.

$65,000

c.

$10,400

d.

$75,400

Assume that on 1 January 2017 X has a patent (limited life) on how to extract oil from shale rock. The expected future net cash flows from this patent 7500000 and the carrying amount $50000000. The fair value of its patent to be $20000000. The loss on impairment is

a.

20000000

b.

30000000

c.

No impairment loss

d.

50000000

Clear my choice

On 1 January 2020, X company borrowed 4-year $10000 zero-interest bearing notes from Arab bank. The interest is payable on December 31. The implicit interest rate is 0.08. X will received

a.

$7350

b.

$7722

c.

$7034

d.

$8234

Clear my choice