Question
The project cost was initially R6170 in the beginning of 2020 for a automated selling system. During the year 2020 a profit before tax and
The project cost was initially R6170 in the beginning of 2020 for a automated selling system. During the year 2020 a profit before tax and depreciation was made of R5425. Depreciation was calculated as R1749 for the year 2020. During the year 2021 a profit before tax and depreciation was made of R4336. At the end of the year 2021 depreciation was again calculated as R1833. The automated selling system was sold at the end of 2021 at book value. Book value is the Initial cost - the sum of all depreciation.
The company is taxed at 28% of profit before tax. The company uses MARR of 100*0.285%.
Calculate the amount of tax paid in 2021 to two decimals accurate?
Step by Step Solution
3.33 Rating (147 Votes )
There are 3 Steps involved in it
Step: 1
Lets break down the calculation 1 Calculate the profit before tax for 2021 tex...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
Students also viewed these Finance questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App