Question

Gennie Limited is in its first year of operation and manufactures and sells generators to

hardware stores and retails them online. With the influx of demand for generators in the

country, Gennie Limited achieved a profit before tax for the year ended 28 February 2015 of

N$1 900 000. This profit before tax included dividend income of N$100 000 from its investments

in listed companies (exempt from income tax) and donations of N$50 000 which are

considered to be non-deductible.

The income tax rate was 30%.

There were no temporary differences during 2015 and no components of other

comprehensive income.

Required:

a) Prepare the current income tax computation for the year ended 28 February 2015

Answer 1