$$Explain by giving examples the causes of the differences between taxable income and accounting income $(5$ Marks$)$ 

 

b$.$ Dolphin Company Limited has results of its operations for the year $2014$ as follows;

$$ The accounting income was $100,000/=$ including credit sales of $60,000/=$

$$ The expenditure included $50,000/=$ for warranty expense

$$ The tax rate for the period and future is $40\%$

Required

a$)$ Determine the taxable income $(5$ Marks$)$

b$)$ Determine the taxes payable and deferred tax amount $(5$ Marks$)$

c$)$ Show Journal entries to record the tax expense $(5$ Marks$)$