top of page
Review Your SQE 1 Practice Records

Examination Timing: 00H00M04S

A private limited company has an accounting period from 1 April to 31 March. For the accounting period, it has trading receipts of £750,000. It has made a gain from the sale of a piece of land of £25,000. It has spent £35,000 on raw materials, £345,000 on wages, and £3,500 on general production costs. 


What is the company's taxable profit for corporation tax purposes?

< Previous

You have chosen the incorrect answer.

Next >

To determine the company's taxable profit for corporation tax purposes, we calculate the total income and then subtract allowable expenses. The trading receipts are £750,000 and the gain from the sale of land is £25,000, giving a total income of £775,000. The allowable expenses are raw materials (£35,000), wages (£345,000), and general production costs (£3,500), totalling £383,500. Subtracting the expenses from the income: £775,000 - £383,500 = £391,500.


Key Point: The taxable profit for corporation tax purposes is calculated by summing the total income and subtracting allowable expenses.

Collect Question

userContent

Study CELE SQE.png
CELE SQE PASS wishes from Lucky Lion_

Ai Content

bottom of page