The Following Information Was Extracted from the Accounting Records of Penguin

question 8

Multiple Choice

The following information was extracted from the accounting records of Penguin Pty Ltd for the year ended 30 June 20X9:
$\begin{array} { l r } &\$\\\text { Interest revenue } & 500000 \\\text { Sales revenue } & 5000000 \\\text { Dividend revenue } & 1500000 \\\text { Depreciation expense } & 700000 \\\text { Wages and annual leave expense } & 1500000 \\\text { Other expense } & 3000000\end{array}$
The company income tax rate is 30%.
The annual leave expense totaled $300 000, and $100 000 of annual leave was paid during the year.
The dividend revenue is not assessable income.
-What is Penguin Ltd's period profit or loss (accounting profit after tax) using the tax payable method?

• A)$1 400 000
• B)$1 750 000
• C)$1 650 000
• D)$900 000

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Definitions:

Operating Activities

Transactions and events related to the primary business operations, including the production, sales, and delivery of a company's products and services.

Financing Activities

Transactions that involve raising capital or repaying investors, such as issuing equity or taking on new loans.

Issuing Bonds

The process by which a corporation or government raises funds by selling bonds to investors, with the promise to pay back the principal along with interest on specified dates.

Affects

Impacts or influences an outcome, result, or condition.