We read your photo as:

Adjusted taxable income for Baraka Ltd. for the year ended 31st December 2024.

Accounting

ScanSolve AI Answer

Answer

Sh. 554,000\text{Sh. } 554,000

Step-by-step solution

3 steps

To calculate the adjusted taxable income, we will start with the adjusted profit for tax purposes calculated in the previous step and then deduct the capital allowances.

  1. State the Adjusted Profit for tax purposes from the previous calculation.

    Adjusted Profit (before capital allowances)=Sh. 774,000\text{Adjusted Profit (before capital allowances)} = \text{Sh. } 774,000

  2. Deduct the agreed Capital Allowances.

    Capital Allowances=Sh. 220,000\text{Capital Allowances} = \text{Sh. } 220,000

  3. Calculate the Adjusted Taxable Income.

    Adjusted Taxable Income=Adjusted Profit−Capital Allowances\text{Adjusted Taxable Income} = \text{Adjusted Profit} - \text{Capital Allowances} Adjusted Taxable Income=774,000−220,000\text{Adjusted Taxable Income} = 774,000 - 220,000 Adjusted Taxable Income=Sh. 554,000\text{Adjusted Taxable Income} = \boxed{\text{Sh. } 554,000}
Was this helpful?

Try one yourself

A new problem that tests the same skill.

Still stuck on this one?

Ask a follow-up, and the answer starts from this question.

Got a different question?Ask your own question

More Accounting Questions

QPrepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st…QPrepare the Income Statement for ONGA Ltd for the year ended 31 December 2019.QPrepare the Contract Account for Botswana Building Contractors Ltd (BBCL) for the year ended 31…QCalculate the taxable income from the following investments made by Mr. Ram for the A.Y. 2025-26.QComplete the Statement of Comprehensive Income for the year ended 30 June 2025.
See all Accounting questions →
Got a syllabus? Photograph it and I'll tell you what's due and what's worth the most.