Use the information below to answer the question:Turnover..........................

Question

Use the information below to answer the question:

Turnover...........................₦120 000
Net profit before tax..............₦40 000
Net profit b/f.....................₦68 000

Proposed dividends:

Ordinary shares....................₦8 000
Preference shares..................₦6 000
Corporate tax is 30%...............₦10 000

What is the tax charged to the profit and loss account?

Options

D)

₦20 000