Assuming that a company's accounting profit before tax is $150 000,its taxable income is $45 000 and a tax rate of 30%,the current tax liability for the company would be:

Question

Quizplus · Accepted Answer

The current tax liability is calculated based on the taxable income, not the accounting profit. Therefore, with a taxable income of $45,000 and a tax rate of 30%, the tax liability is $45,000 * 30% = $13,500.

Assuming That a Company's Accounting Profit Before Tax Is $150