I have to calculate taxable income for a firm with the following items as profit for 2011: Profit before Tax = 414000, Doubtful Debt expenses 33000, Amortisation of research and development costs 29000, Depreciation expense on equipment 60 000, Loss on disposal of equipment 6000. It comes with a belance sheet with totals for 2011 and 2010. Equipment is depreciated for tax purposes at 20% p.y. Research and Development can be claimed at 125% for tax deduction. One of the firm's equipment pieces bought for $80 000 2 years ago are sold off for $50 000. Tax rate for company is 30%.
Balances provided in the balancesheet for applicable items are: Accounts Receivable (2011) $425 000 (2010) $515 000, Provision for doubtful debts (2011) ($60 000) (2010) ($43000)- brackets meaning negative amounts, Equipment (2011) $320 000 (2010) $400 000, Accumulated Depreciation (2011) ($160 000) (2010) ($124000), Research and Development Costs (2011) $116 000, Accumulated Amortisation of Development Costs (2011) $28 000 (2010) $0.
How do I do this? I am not sure where to start or how to treat some of these.