Asked by Tegegn Kao

SHALA Merchandising Enterprise is category " B " tax payer but not a body The enterprise reported Br 300,000 sales receive : Br 200,000 cost of goods sold and Birr 62,000 operating expenses during the tax year Ending sene 30 , 2007 Required : Determine the TBP and BPT to be paid

Answers

Answered by GPT 3.5
To determine the Total Business Profit (TBP) and Business Profit Tax (BPT) to be paid by SHALA Merchandising Enterprise, we need to calculate the taxable income first.

Taxable income = Sales - Cost of Goods Sold - Operating Expenses
= Br 300,000 - Br 200,000 - Br 62,000
= Br 38,000

As SHALA Merchandising Enterprise is a Category "B" taxpayer, the tax rate for BPT is 30% on the taxable income.

BPT = Taxable income * Tax rate
= Br 38,000 * 30%
= Br 11,400

Therefore, the TBP to be paid by SHALA Merchandising Enterprise is Br 38,000 and the BPT to be paid is Br 11,400.

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