4. The partners agreed to dispose of an old pick-up truck with a net book value of $350, for $400,000. The pick-up had a tax written down value of $300,000. 5. Donations of $60,000 were made to a local political party to fund its campaign. The remainder was donated to an approved local children's home. 6. The partners could not determine if all their clients would be able to settle their bills time so a general provision of $60,000 was made to cushion the effect of the any debt going bad. The balance related to a particular client that had gone bankrupt, which the firm was unable to collect after several attempts. 7. Fines and Penalties include traffic offences of $5,000 and penalties of $10,000 for no filing of VAT returns for the period January-March 2022. 8. Interest accrued was $50,000 for the year. 9. The partnership agreement stated that the partners are to share profit and loss in the r 60:40 (Shine 60% and Rain 40%) 10. Mrs. Shine is a director for a local company and receives net emoluments of $2,250,0 per annum; PAYE of $750,000 was deducted. 11. During the year Mrs. Shine rented his private dwelling for $150,000 per month for 8 months. He also received gross income from teaching law at a university of $6,000,00 per year. 12. The partners each paid estimated obligations of $20,000 per quarter on March 15, Jun 15, September 15, and December 15. 13. Mr. Rain received interest income from his financial institution of $150,000 for the y Mrs. Shine received an interest income of $75,000. 14. PAYE deducted from Mrs. Shine salary from the practice was $352,476 and $109,476 for Mr. Rain. 15. The partners both invested $5,000,000 in the business. The interest rate agreed on cap invested was 8%. 16. NIS for Mr. Rain was $240,00 and Mrs. Shine was $210,000. Required i. Compute that income tax payable/refundable for each partner for 2022. Other Contributions payable is not required. ks)
4. The partners agreed to dispose of an old pick-up truck with a net book value of $350, for $400,000. The pick-up had a tax written down value of $300,000. 5. Donations of $60,000 were made to a local political party to fund its campaign. The remainder was donated to an approved local children's home. 6. The partners could not determine if all their clients would be able to settle their bills time so a general provision of $60,000 was made to cushion the effect of the any debt going bad. The balance related to a particular client that had gone bankrupt, which the firm was unable to collect after several attempts. 7. Fines and Penalties include traffic offences of $5,000 and penalties of $10,000 for no filing of VAT returns for the period January-March 2022. 8. Interest accrued was $50,000 for the year. 9. The partnership agreement stated that the partners are to share profit and loss in the r 60:40 (Shine 60% and Rain 40%) 10. Mrs. Shine is a director for a local company and receives net emoluments of $2,250,0 per annum; PAYE of $750,000 was deducted. 11. During the year Mrs. Shine rented his private dwelling for $150,000 per month for 8 months. He also received gross income from teaching law at a university of $6,000,00 per year. 12. The partners each paid estimated obligations of $20,000 per quarter on March 15, Jun 15, September 15, and December 15. 13. Mr. Rain received interest income from his financial institution of $150,000 for the y Mrs. Shine received an interest income of $75,000. 14. PAYE deducted from Mrs. Shine salary from the practice was $352,476 and $109,476 for Mr. Rain. 15. The partners both invested $5,000,000 in the business. The interest rate agreed on cap invested was 8%. 16. NIS for Mr. Rain was $240,00 and Mrs. Shine was $210,000. Required i. Compute that income tax payable/refundable for each partner for 2022. Other Contributions payable is not required. ks)
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 3PA
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