alleryStart learning →Best-estimate annual tax rate is 25%. Interim profit before tax is Rs 8,00,000. Tax expense for the period?
ARs 1,60,000
BRs 2,40,000
CRs 2,50,000
DRs 2,00,000
Answer & Solution
Correct answer: D. Rs 2,00,000
Applying the estimated annual rate to interim profit gives 25% of 8,00,000, which is Rs 2,00,000.
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