MFB Ltd had a Profit before tax GH¢30,000 from its retail stores and had the following transactions in the 2021 year of assessment:The following transactions were included before arriving at the profit before tax: Depreciation GH¢25,000, rent expense GH¢15,000, rent income GH¢7,000, Provision for doubful debts GH¢5,000, Specific Bad Debt GH¢10,000, General bad debt written off GH¢3,500, Total financial gain GH¢15,000, Total financial cost GH¢50,000. The following were also relevant but not taken consideration before arriving at the profit before tax; Unrelieved loss GH¢7,000, Capital allowance GH¢20,000. Determine the chargeable income after adjusting for financial gain and financial cost. A. GH¢61,500 B. GH¢51,500 C. GH¢70,500 D. GH¢53,500

A company commenced business on 1 July 2022. On 30 June 2023, an extract of the statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information:  AssetsLiabilitiesCash$20,000Accounts Payables$50,000Inventories60,000Provision for annual Leave8,000Plant200,000  Accumulated Depreciation(20,000)   Additional information:  The plant was acquired on 1 July 2022. Depreciation for accounting purposes was 10% (straight-line method), while 20% (straight-line) was used for tax purposes. The tax rate is 30%.The deferred tax liability and deferred tax asset are:Group of answer choicesDTL = $2,400 and DTA = $6,000DTL = $20,000 and DTA = $8,000DTL = $8,000 and DTA = $20,000DTL = $6,000 and DTA = $2,400

Last year Cole Furnaces had $5 million in operating income (EBIT). The companyhad a net depreciation expense of $1 million and an interest expense of $1 million; itscorporate tax rate was 40%. The company has $14 million in operating current assetsand $4 million in operating current liabilities; it has $15 million in net plant andequipment. It estimates that it has an after-tax cost of capital of 10%. Assume thatCole’s only noncash item was depreciation.a. What was the company’s net income for the year?b. What was the company’s net cash flow?c. What was the company’s net operating profit after taxes (NOPAT)?d. Calculate net operating working capital and total net operating capital for thecurrent year.e. If total net operating capital in the previous year was $24 million, what was thecompany’s free cash flow (FCF) for the year?f. What was the company’s Economic Value Added (EVA)?

Mel Ltd has reported an accounting/net profit before income tax for the year ended 30 June 2021 of $645,000. Included in this profit are entertainment expenses (non-deductible) of $10,000. Mel Ltd also has accumulated tax losses carried forward of $60,000.On the basis of the above information, what is the tax payable of Mel Ltd for the year ended 30 June 2021 in accordance with the requirements of AASB112 Income Taxes?

B330 Limited always sells inventory items to its subsidiary B380 Limited at a 40 percent markup on cost. During the 20X7 financial year, the unrealised profit in opening inventory of B380 Limited exceeds that of its unrealised profit in closing inventory. Assuming the same tax rate for both 20X6 and 20X7 financial years, which of the following statements is correct with respect to B330 Limited’s consolidated financial statements after considering these transactions only?Group of answer choicesConsolidated profit for the 20X7 financial year will decrease.Consolidated sales and purchases/cost of goods sold for the 20X7 financial year will be unaffected.The retained earnings opening balance for the 20X7 financial year will increase.Consolidated profit for the 20X7 financial year will increase.

In what year the Governmental Accounting Standards Board undertook a major project to reexamine the current MFBA for governmental funds?Select one:a.1994b.1984c.2004d.1988