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متابعة

Dividend Payment

Yukon Corporation has an operating income of $200,0, pays interest charges of $50,0, and pays dividends of $40,0. The company’s taxable income is?

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تم إضافة السؤال من قبل Anayatullah Tahir , Finance Manager , Etqan Projects
تاريخ النشر: 2014/03/30
Sajid Hameed - ACA
من قبل Sajid Hameed - ACA , Chief Financial Officer / Acting Chief Operations Officer , EPC (Tamimi Group Company)

Net Income i.e. $150

Aziz ur Rehman ur Rehman
من قبل Aziz ur Rehman ur Rehman , Assistant Manager Finance , Central Power Puchasing Agency (CPPA)

in this case,

the answer will be

operating income less intrest charges = taxable income

200000 -50000 =150000  = Taxable income

40000 is a distribution for net profit

Shafiulla Mohammad
من قبل Shafiulla Mohammad , Customer Service Adviser , University of Bedfordshire

The answer is150,000, as income only after interest obligation, if any is considered for taxation. 

Khaled Mohammed Abdel aal Ahmed
من قبل Khaled Mohammed Abdel aal Ahmed , senior accountant , Mohammed Ali Al-Dukhan & sons co

income from counting operations before tax  150,0, 

Abid Waheed
من قبل Abid Waheed

Operating Profit  200K

less: Interest      -50K

Net Income        150K  (Taxable income)

Majid Rehman
من قبل Majid Rehman , Manager Reporting and Taxation , Ahmed Fine Weaving Ltd

200 -50 comes out to150 which will be the taxable income.

Ibrar Ahmad ACA
من قبل Ibrar Ahmad ACA , Financial Analyst , Bin Ghalib Engineering Group

Taxable Income= $150

SHAIKH MOHAMMED BASHEER AHMED SHAIKH
من قبل SHAIKH MOHAMMED BASHEER AHMED SHAIKH , Account Manager , Tarik Al Zahid Holding Company

Taxable income is150.00 (arrive at operating income - interest charges)

If it pays dividend and pay tax is double taxed.

Muhammad Zubair
من قبل Muhammad Zubair , CFO / Chief Accountant , RH Group

The taxable income is $150, while dividend if paid during the year will be shown in SOCIE if not paid during the year will only be mentioned in Director report only and not mentioned elsewhere in the financial statement.

Umer Aziz
من قبل Umer Aziz , Senior Accountant , TERNA Bahrain Holding - GEK Group (www.terna.gr)

$150 (operating income less intrest charges = taxable income)

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