George operates a business that generated revenues of $50 million and allocable taxable income of $1.25 million. Included in the computation of allocable taxable income were deductible expenses of $240,000 of business interest and $250,000 of depreciation. What is the business interest limitation that George will be subject to this year if the business does not qualify under the gross income test?

The deduction for business interest expense is limited to the sum ofbusiness interest income and30 percent of the adjusted taxable income of the taxpayer for the taxable year.

Interest incurred in the ordinary course of business is deductible with certain limitation as long as the related loan is used for business purposes. The acceptable methods to limit the interest deduction are those commonly used internationally, such as percentage of earnings before interest, taxes, depreciation, and amortisation (EBITDA), debt-to-equity ratio, or other methods.Interest on loans relating to time deposits (which income is subject to a final tax) is not deductible.Interest on loans used to buy shares where dividends to be received are not subject to income tax is also not deductible.

If profit after tax and interest is $400,000, interest expense is $50,000 and taxation expense is $84,000, profit before interest and tax is:$291,000$484,000$450,000$534,000

Mel Ltd has reported an accounting/net profit before income tax for the year ended 30 June 2021 of $645,000. Included in this profit are entertainment expenses (non-deductible) of $10,000. Mel Ltd also has accumulated tax losses carried forward of $60,000.On the basis of the above information, what is the tax payable of Mel Ltd for the year ended 30 June 2021 in accordance with the requirements of AASB112 Income Taxes?

If assets at the end of the year are $245,000, liabilities at year end are $80,000, opening balance of owners' equity is $120,000, and revenue for the year is $165,000, expenses must be: