Mr tom white the president of white crane importing ltd


Mr Tom White, the president of White Crane Importing Ltd (WCIL), informed you that his firm has an accounting profit before tax (PBT) of $800,000, the corporate tax rate is 25.0 percent, and (during the tax year) WCIL experienced and journalised the following items:

i. The WCIL sales people spent $35,000 entertaining customers.

ii. WCIL won $60,000 in a lottery.

iii. Goodwill was found to be impaired and was written down by $45,000.

iv. Prepaid rent of $200,000 was paid for a new warehouse that will be used in the following tax year.


Attachment:- MWS49DIA915ACC.rtf

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