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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