Compute the Tax payable of M/s Alpha Pvt Ltd on the basis of following information: (Note: -
Question:
Compute the Tax payable of M/s Alpha Pvt Ltd on the basis of following information: (Note: - Tax Rate is 29% on corporate entities.)
Accounting Profit ..............................................................................2,000,000/-
Accounting depreciation (including assets under Leasing) ..........275,000/-
Head office expenses .........................................................................225,000/-
Computer software cost-Capitalized in accounts ..........................100,000/-
Finance charges on assets taken on Lease .....................................75,000/-
Lease Rental ......................................................................................130,000/-
Interest paid to other Branches Abroad .........................................15,000/-
Require:-
1) identify what are the expenses in this data and what the accounting profit ?
2) Compute Tax Liability of M/s Alpha Pvt Ltd?
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan