A Company Has Income Before Tax of $350,000, Which Includes

question 61

Essay

A company has income before tax of $350,000, which includes a permanent difference of $65,000 relating to non-taxable dividend income. There are no other permanent or temporary differences. The income tax rate is 45%.
Required:
Compute the amount of taxes payable and income tax expense.

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Definitions:

Amelodic

Lacking a coherent melody or not based on traditional harmonic structures.

Subcontraries

In logic, two propositions that can both be true but cannot both be false, used particularly in the context of categorical propositions.

Contradictories

Logical opposites, where one statement denies the truth of the other statement.

Converses

In logic and mathematics, converses refer to statements in which the hypothesis and the conclusion of a conditional statement are swapped.