JAMB Principles of Accounts 2006 Question 16

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
General reserves ₦10 000
Corporate tax is 50%
What is the tax charged to profit and loss account?

1. A.₦14 000
2. B.₦60 000
3. C.₦34 000
4. D.₦20 000.