The Following Information Relates to Hoover Limited for the Year

question 15

Multiple Choice

The following information relates to Hoover Limited for the year ended 30 June 2015.
Accounting profit before income tax (after all expenses have been included) $280 000
Fines and penalties (not tax deductible) 22 000
Depreciation of plant (accounting) 50 000
Depreciation of plant (tax) 110 000
Long-service leave expense (not a tax deduction until the leave is paid) 10 000
Income tax rate 30%
No employee has been paid long-service leave in the current year. On the basis of this information the current tax liability is:

• A) $69 000.
• B) $75 600.
• C) $72 600.
• D) $92 400.

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Definitions:

Human Capital

Refers to the economic value of a worker's experience and skills, including factors like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Designated Group

Specific categories of individuals identified for preferential treatment or consideration based on various criteria such as race, gender, or disability.

University Graduates

Individuals who have completed a course of study at a university and received a degree or diploma.

Hiring In Canada

The process and legal nuances involved in employing individuals within the Canadian jurisdiction.