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The following information relates to AA.
Extract of Trial Balance at 31 December 20X4;
Notes
(i) Inventory at 31 December 20X4 was valued at cost at $30.
(ii) The loan which was received on 1 July 20X4 is repayable in 20X9.
(iii) Corporate income tax represents an over-provision of tax for the year ended 31 December 20X3. AA reported a loss for tax purposes for the year ended 31 December 20X4 and a tax refund is expected amounting to $20.
(iv) Cost of sales, administration and distribution costs need to be adjusted for the following:
What figures should be entered on the face of the Statement of profit or Loss for the year ended 31 December 20X4 in relation to Interest and Corporate income tax?
Suggested Answer: A
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13 comments · newest first
EL
Ellen
12 months ago
I agree with A, but why is interest $25?
JE
Jesus
12 months ago
Definitely not B, that tax figure is incorrect.
AP
Apolonia
1 year ago
Wait, how can corporate tax be negative? Sounds off.
RO
Rolande
1 year ago
I think it's option A, makes the most sense.
CH
Cheryll
1 year ago
Interest should be $25, tax refund is $20.
GL
Glenna
1 year ago
I think the tax refund means we should show it as a positive figure, but I can't remember if it should be $37 or $3.
EV
Eva
1 year ago
I practiced a similar question where the interest was $25, but I feel like I might be mixing it up with another example.
TE
Teddy
1 year ago
The corporate income tax part is tricky; I think it might be an over-provision, so it could be negative, but I can't recall the exact amount.
JE
Jeff
1 year ago
I remember we discussed how to handle interest expenses, but I'm not sure if it's $25 or $50.
AL
Alton
1 year ago
Okay, let me think this through. A hard bounce is when the email is permanently rejected, usually due to an invalid address. And a soft bounce is a temporary issue, like the recipient's inbox being full. I think I've got it now.
LE
Lemuel
1 year ago
Hmm, I'm not totally sure about this one. There are a few options that seem reasonable, like doing an environmental audit or just being really careful in reviewing the property. I'll have to think through the pros and cons of each approach.
BE
Ben
1 year ago
I'm a bit confused by the options here. I'll need to review my notes on access control models to make sure I understand the differences between them.
MA
Marnie
1 year ago
I'm a bit unsure about this one. The options seem to be related to different aspects of the Cisco ACI Multi-Site Orchestrator configuration, but I'm not sure which one is the specific action required before associating the schema. I'll need to review the details of the Cisco ACI Multi-Site Orchestrator setup process to determine the right answer.