The Following Information Was Extracted from the Accounting Records of Penguin

question 11

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 the total allowable deductions for the reporting period?

• A)$5 200 000
• B)$5 400 000
• C)$5 000 000
• D)$4 800 000

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Definitions:

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically improving on well-practiced tasks.

Deindividuation

A psychological state where an individual immersed in a group loses awareness of self and as a result may act contrary to their norms or ethics, often seen in crowds or mobs.

Individualism

A social and cultural ethos that emphasizes the moral worth of the individual and the importance of independence and self-reliance in personal and social decision-making.

Nonconformity

The refusal to conform to established customs, attitudes, or ideas, often manifesting as individualism or dissent.