1.

The following data is given to ABC Business for the year ended Sene 30, 2010
Date Description Cost
January Balance 1000@60
February Purchase 800@62
March Purchase 600@62
April Purchase 400@64
May Purchase 700@64
June Purchase 500@68
July Purchase 300@68
August Purchase 900@70
September Purchase 200@70
October Purchase 1,100@74
November Purchase 800@74
December Purchase 700@76

No Plant Asset Original Additions Disposal Accumulated

cost Depreciation
1 Building 1,200,000 80,000 - 200,000
2 Equipment 120,000 40,000 10,000 20,000
3 Computer& accessories 100,000 40,000 12,000 30,000

 Physical count indicates that there were 1,800 units on hand

 Total revenue amounts to br. 2,000,000
 Prepaid insurance that amounts to br. 12,000 for the period that covers 3 years
 Interest on borrowed funds amounted to br. 400,000(National Bank of Ethiopia interest
rate is br. 10%)
 Uncollectible accounts expense amounts to br. 15,000 where the tax auditor accepts only
60% of it
 The cost of goods sold included an inventory amounting br. 20,000 covered by insurance
 ABC Business
Income statement
For the year ended Sene 30, 2010
Descriptions For Financial Reporting For Income Tax
Sales 1,500,000
Less cost of goods sold 500,000
Gross profit 1,000,000
Operating expenses
Basic salary expenses 160,000
Provident fund contributions (20%) 32,000
Utility expense 5,000
Donations
To Makedonia 15,000
To Adama Foot Ball Club 10,000
Depreciation Expense- Building 54,000
Depreciation Expense-Equipment 32,000
Depreciation Expense- Computer 24,500
Repair and Maintenance Expense 50,000
Interest Expense 64,000
Dividend payable 12,000
Additional Investment 5,000
Uncollectible Accounts Expense 15,000
Prepaid Insurance 12,000
Personal consumption expense 4,000
Total Operating expense 494,500
Income before income taxes 505,000
Income tax expense(505,000 x 35% -18000) 158,925
Net income 346,075
Required

Based on the data given above fill the table with an appropriate amount as per the tax proclamation