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Exco plc’s accountants have prepared the following IFRS income statement summary for the year ended 31 December 20X1: Amounts in £ Year 20X1 Total revenue 100,000 Total expenses 70,000 * Profit before tax 30,000                                                                   * includes a non-deductible expense (see below) The following information is also available: -       Exco plc’s expenses include £10,000 for a penalty charge which is not tax-deductible. -       The statutory tax rate on corporate profits is 20%. The current tax (expense) reported for the year ended 31 December 20X1 is:   a. £3,000 b. £6,000 c. £8,000 d. £9,000 e. £13,000

Exco plc’s accountants have prepared the following IFRS income statement summary for the year ended 31 December 20X1: Amounts in £ Year 20X1 Total revenue 100,000 Total expenses 70,000 * Profit before tax 30,000                                                                   * includes a non-deductible expense (see below) The following information is also available: -       Exco plc’s expenses include £10,000 for a penalty charge which is not tax-deductible. -       The statutory tax rate on corporate profits is 20%. The current tax (expense) reported for the year ended 31 December 20X1 is:   a. £3,000 b. £6,000 c. £8,000 d. £9,000 e. £13,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exco plc’s accountants have prepared the following IFRS income statement summary for the year ended 31 December 20X1:

Amounts in £

Year 20X1

Total revenue

100,000

Total expenses

70,000 *

Profit before tax

30,000

                                                                  * includes a non-deductible expense (see below)

The following information is also available:

-       Exco plc’s expenses include £10,000 for a penalty charge which is not tax-deductible.

-       The statutory tax rate on corporate profits is 20%.

The current tax (expense) reported for the year ended 31 December 20X1 is:


 

a.

£3,000

b.

£6,000

c.

£8,000

d.

£9,000

e.

£13,000

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