Petrodar oil company entered into a concessionary agreement with Namibia Government. Petrodar oil company agreed to...

 

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Petrodar oil company entered into a concessionary agreement with Namibia Government. Petrodar oil company agreed to pay the government 12% of gross production. The gross sales of Petrodar oil Company in the first year was $ 12,000,000. production costs and drilling costs of Petrodar oil company were $1,000,000 and $10,000,000 respectively. The income tax laws of Namibia allow deduction of all production costs, with drilling costs deductible over a ten-year period. The taxable income of Petrodar was Select one: a $10,000,000 b. $8,560,000 c. $11,000,000 d. $9,000,000 Petrodar oil company entered into a concessionary agreement with Namibia Government. Petrodar oil company agreed to pay the government 12% of gross production. The gross sales of Petrodar oil Company in the first year was $ 12,000,000. production costs and drilling costs of Petrodar oil company were $1,000,000 and $10,000,000 respectively. The income tax laws of Namibia allow deduction of all production costs, with drilling costs deductible over a ten-year period. The taxable income of Petrodar was Select one: a $10,000,000 b. $8,560,000 c. $11,000,000 d. $9,000,000

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Note Commission paid to Government 12 on Gross production 12 on 12000000 1440000 Gross production also known as Gross sales amount during the year Dri... View the full answer