Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

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

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.
B) $39,174
A) $47,840
C) $57,546
D) $44,160

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

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 104
Topic #: 1
[All CIMAPRA19-F01-1 Questions]

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.

Show Suggested Answer Hide 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:

0/2000 characters
Submit Cancel
Goldie
9 months ago
Totally agree, option D seems right!
upvoted 0 times
...
Cherelle
10 months ago
Wait, how does the dividend affect the tax calculation?
upvoted 0 times
...
Leatha
10 months ago
I'm leaning towards option D, $44,160.
upvoted 0 times
...
Ronnie
10 months ago
Don't forget the disallowable income and expenses!
upvoted 0 times
...
Willie
10 months ago
The accounting profit was $243,200 before tax.
upvoted 0 times
...
Thaddeus
10 months ago
I’m pretty sure we just need to focus on the adjusted profit before tax to find the tax due, but I can’t recall the exact steps to take.
upvoted 0 times
...
Elvis
11 months ago
I feel like I’ve seen something similar in our revision notes, where we adjusted profits for tax purposes. I think we need to calculate the effective tax rate too.
upvoted 0 times
...
Glory
11 months ago
I think we need to subtract the disallowable expenses from the accounting profit, but I’m a bit confused about how the dividend plays into the tax calculation.
upvoted 0 times
...
Starr
11 months ago
I remember we had a practice question about adjusting profits for tax calculations, but I’m not sure how the disallowable income affects the taxable profit here.
upvoted 0 times
...
Emily
11 months ago
I'm a bit confused about how to handle the dividend payment. Does that affect the tax calculation in any way? I'll need to double-check the instructions to make sure I'm not missing anything important.
upvoted 0 times
...
Felix
11 months ago
This looks straightforward enough. I'll just need to be careful to apply the correct tax rates to the different components of the taxable profit. As long as I don't make any silly mistakes in the calculations, I should be able to get the right answer.
upvoted 0 times
...
Osvaldo
11 months ago
Okay, I think I've got this. First, I'll add the disallowable income of $48,000 and the disallowable expenditure of $25,600 to the accounting profit of $243,200 to get the taxable profit. Then I'll apply the tax rates to calculate the tax due.
upvoted 0 times
...
Marg
11 months ago
Hmm, I'm a bit unsure about how to handle the disallowable income and expenditure. Do I need to add them back to the accounting profit or subtract them? And what's the deal with the dividend payment?
upvoted 0 times
...
Melina
11 months ago
This looks like a straightforward tax calculation question. I'll need to adjust the accounting profit for the disallowable items and then apply the tax rates to calculate the tax due.
upvoted 0 times
...
Maryann
1 year 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
1 year 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
1 year ago
User 4: I agree with Danica, $44,160 sounds right.
upvoted 0 times
...
Merilyn
1 year ago
User 3: I'm going with $44,160.
upvoted 0 times
...
Tricia
1 year ago
User 2: No, I believe it is $39,174.
upvoted 0 times
...
Evangelina
1 year ago
User 1: I think the tax due to pay is $47,840.
upvoted 0 times
...
...
Tuyet
1 year ago
Okay, let's see. Disallowable income, disallowable expenses, and the tax rates - this is going to require some calculations.
upvoted 0 times
Elden
1 year ago
C) $57,546
upvoted 0 times
...
Rolland
1 year ago
B) $39,174
upvoted 0 times
...
Kindra
1 year ago
A) $47,840
upvoted 0 times
...
...
Caprice
1 year ago
I see your point, but I still believe it's $47,840 because of the disallowable income and expenditure.
upvoted 0 times
...
Levi
1 year ago
I disagree, I calculated it to be $39,174.
upvoted 0 times
...
Yesenia
1 year 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
1 year ago
User2: Yes, we have to consider the disallowable income and expenditure to get the correct tax amount.
upvoted 0 times
...
Dulce
1 year ago
User1: I think we need to calculate the tax based on the given information.
upvoted 0 times
...
...
Caprice
1 year ago
I think the tax due to pay is $47,840.
upvoted 0 times
...

Save Cancel