Here is information on the profit and loss account of Al Manama Contracting Company, which maintains regular books as on December 31, 2019 and submitted to the tax assessor:

1- There is an amount of 500 dinars that the company obtained in return for renting warehouses in the company’s subsidiary in Aker, which was not included in the real estate rental revenues.

2- Within the revenues there is a compensation of 1,200 dinars received from the National Insurance Company for writing off one of the company's cars.

3- There is equipment leasing income of 7,000 dinars that was not mentioned in the income statement.

4- Net accounting profit of 65,500 dinars.

5- An amount of 700 dinars is included in the operating expenses for arranging a farm belonging to the company.

6- There are 1,000 dinars tax-acceptable bad debts not mentioned in the statement.

7- Personal withdrawals of the company owner, amounting to 1,500 dinars, were recorded within the company's administrative expenses.

Required:

(1) Extract the tax profit (taxable income) of the Manama Contracting Company. (5 marks)

(2) Calculating the amount of income tax imposed on Al Manama Contracting Company. (One mark)

Answer rating: 100% (QA)

1 Period December 31 2019 Dinars Net accounting profit befor... View the full answer