The profit before tax of Max Ltd for the year ended December of R includes the following items:The original cost of the building was R purchased on January
depreciation was R and wear and tear equalled R
Proceeds on sale of building amounted to R
Dividend income of Rnot taxable
Donations of RNot deductible
Traffic fines of RNot deductible
Prepaid expenses totalled R in the current year and R in the prior year.
Income received in advance in the prior year was R
The inclusion rate for capital gains made by companies is The applicable tax rate is
on taxable profits. There were no other temporary differences in the year.
Required:
Calculate taxable profit for the year.
Calculate current taxation and deferred taxation.
Prepare the taxation note for the year.
Disclose an extract of the income statement from profit before tax.
