CIMA Exam CIMAPRA19-F01-1 Topic 1 Question 104 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 104
Topic #: 1

The accounting profit before tax of an entity was $243,200 for the year ended 31 July 20X4.

The accounting profit included disallowable income from government grants of $48,000 and disallowable expenditure of $25,600 on entertaining expenses.

The entity also paid a $40,000 dividend to shareholders. The tax rates for the country were as follows:

Calculate the tax the entity is due to pay for the year ending 31 July 20X4.

A$47,840

B$39,174

C$57,546

D$44,160

Show Suggested Answer

Suggested Answer: B

by Laurel at Dec 04, 2024, 03:06 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F01-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Maryann

3 months ago

Alright, time to put on my accountant hat and get to work. This is going to be a piece of cake... or is it?

upvoted 0 times

...

German

3 months ago

I hope I don't end up like the government, trying to figure out how to tax the entertaining expenses. That must be a tough job!

upvoted 0 times

Danica

2 months ago

User 4: I agree with Danica, $44,160 sounds right.

upvoted 0 times

...

Merilyn

2 months ago

User 3: I'm going with $44,160.

upvoted 0 times

...

Tricia

2 months ago

User 2: No, I believe it is $39,174.

upvoted 0 times

...

Evangelina

2 months ago

User 1: I think the tax due to pay is $47,840.

upvoted 0 times

...

Tuyet

4 months ago

Okay, let's see. Disallowable income, disallowable expenses, and the tax rates - this is going to require some calculations.

upvoted 0 times

Elden

3 months ago

C) $57,546

upvoted 0 times

...

Rolland

3 months ago

B) $39,174

upvoted 0 times

...

Kindra

3 months ago

A) $47,840

upvoted 0 times

...

Caprice

4 months ago

I see your point, but I still believe it's $47,840 because of the disallowable income and expenditure.

upvoted 0 times

...

Levi

4 months ago

I disagree, I calculated it to be $39,174.

upvoted 0 times

...

Yesenia

4 months ago

Hmm, this looks tricky. I'll have to carefully go through the information provided to figure out the correct tax amount.

upvoted 0 times

Margot

3 months ago

User2: Yes, we have to consider the disallowable income and expenditure to get the correct tax amount.

upvoted 0 times

...

Dulce

3 months ago

User1: I think we need to calculate the tax based on the given information.

upvoted 0 times

...

Caprice

4 months ago

I think the tax due to pay is $47,840.

upvoted 0 times

...