Al Dahabi Flour Mills's Income Statement shows OMR 297,500 profit for the year 2019. The following...

 

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Al Dahabi Flour Mills's Income Statement shows OMR 297,500 profit for the year 2019. The following information are provided to arrive the taxable income. > The opening inventory actual value was OMR 72,800, but it was reported as OMR 65,300. > Provision for bad debts of OMR 4,000 has not been included to calculate the above profit. - The firm did not record OMR 5,000 dividend income from equity investment. - The depreciation of a permanent building cost OMR 200,000 has been calculated at 5%. - A vehicle was purchased for OMR 10,000 for official use and it is recorded as an expenses. - The firm incurred advertisement expenses of OMR 27,000. However, the tax authority declared OMR 12,000 as non-deductible for this year. - Travel expenses was OMR 3,800 out of which OMR 3,000 is relevant for business. Calculate the taxable profit and the tax liability of the firm for the year 2019. Al Dahabi Flour Mills's Income Statement shows OMR 297,500 profit for the year 2019. The following information are provided to arrive the taxable income. > The opening inventory actual value was OMR 72,800, but it was reported as OMR 65,300. > Provision for bad debts of OMR 4,000 has not been included to calculate the above profit. - The firm did not record OMR 5,000 dividend income from equity investment. - The depreciation of a permanent building cost OMR 200,000 has been calculated at 5%. - A vehicle was purchased for OMR 10,000 for official use and it is recorded as an expenses. - The firm incurred advertisement expenses of OMR 27,000. However, the tax authority declared OMR 12,000 as non-deductible for this year. - Travel expenses was OMR 3,800 out of which OMR 3,000 is relevant for business. Calculate the taxable profit and the tax liability of the firm for the year 2019.

Answer rating: 100% (QA)

Calculation of taxable income is as follows Particulars Amou... View the full answer