XYZ operates in Country P where the tax rules state entertaining costs and accounting depreciation are disallowable for tax purposes.

XYZ operates in Country P where the tax rules state entertaining costs and accounting depreciation are disallowable for tax purposes.

In year ending 31 March 20X4, XYZ made an accounting profit of $240,000.

Profit included $14,500 of entertaining costs and $5,000 of income exempt from taxation.

XYZ has plant and machinery with accounting depreciation amounting to $26,300 and tax depreciation amounting to $35,200.

Calculate the taxable profit for the year ended 31 March 20X4.
A . $221,600
B . $258,400
C . $239,400
D . $240,600

View Answer

Answer: D