1. Muscat Electricity Company earned net profit of OMR 245,000 in the tax year 2019. Previously...

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1. Muscat Electricity Company earned net profit of OMR 245,000 in the tax year 2019. Previously the company has incurred losses as follows: Year Loss (OMR) 2012 22,000 2013 18,000 2014 8,000 2015 2,000 These losses have not been carried forward and set-off from the succeeding year's incomes. Moreover, the closing stock was overvalued by OMR 5,000 by the accountant. You are required to calculate the tax liability to Muscat Electricity Company for the tax year 2019 by assuming its registered capital is OMR 500,000. 1. Muscat Electricity Company earned net profit of OMR 245,000 in the tax year 2019. Previously the company has incurred losses as follows: Year Loss (OMR) 2012 22,000 2013 18,000 2014 8,000 2015 2,000 These losses have not been carried forward and set-off from the succeeding year's incomes. Moreover, the closing stock was overvalued by OMR 5,000 by the accountant. You are required to calculate the tax liability to Muscat Electricity Company for the tax year 2019 by assuming its registered capital is OMR 500,000.

Answer rating: 100% (QA)

1 When a company incurs losses it can carry forward those losses and set it off against profit earne... View the full answer