Tavernol makes an accounting profit of 455,000. Tax law (case data) requires 37,000 of non-deductible expenses to be added back and allows 12,000 of exempt income to be deducted. The rate enacted at the reporting date is 25%. Compute taxable profit and current tax.
- Accounting profit
- 455,000
- Add-backs
- 37,000
- Deductions
- 12,000
- Enacted tax rate (%)
- 25 %