Use the information below to answer question

Turnover........................N120,000 Net profit before tax.........N40,000 Net profit b/f.....................N68,000 Proposed dividends: Ordinary shares....................N8,000 Preference shares................N6,000 Corporate tax is 30%........N10,000

What is the tax charged to profit and loss account?

A.

N14,000

B.

N60,000

C.

N34,000

D.

N20,000

Correct answer is D

No explanation has been provided for this answer.