Calculate taxable income of SLK (Pty)
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A: Taxable Compensation / Income - It is the amount of money earned during the particular period upon…
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A: Compensation for injuries or sickness, Income exempt under treaty, Gains from redemption of shares…
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A: Ordinary assets are those assets or the properties used in the trade or business which is primarily…
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A: Net cash flow after tax is an important measure used for the purpose of evaluation of company's…
Q: Net Taxable Income
A: To calculate Taxable income / Net income we have to prepare income statement. No need to prepare…
Q: Characteristics RESP RRSP TFSA Earnings accumulate tax free within the plan Contributions to the…
A: The answers are as follows:
Q: Define the term Corporate taxable income?
A: Definition: A corporate tax is a type of direct tax that is levied by the state on the income of a…
Q: kable income and accounting inco epreciation expense terest expense
A: Taxable income refers to the money earned by an entity on which the government levied a mandatory…
Q: When the temporary differences result to financial income higher than taxable income, they are known…
A: As per IAS 12 Taxable temporary differences Temporary differences that will result in taxable…
Q: Statement 1: Life insurance premiums shall be reported as a deductible expense for financial…
A: Tax is the liability that person owes to the government.
Q: Give the formula to determine taxable wages
A: Any money earned by an individual is subject to government taxation. Hourly pay, overtime pay, a…
Q: 9. Which of the following situations will result to a not a future taxable amount? A. Carrying…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Income tax is levied on all of the following taxable items except: O Wages O Interest and dividends…
A: Income tax is levied on Wages, Interest and dividends from moeny invested and Capital gains from…
Q: What is a taxable gift?
A: Gift tax: When a person transfers a property to another person without any consideration then such…
Q: Which of the following situations will result in a future deductible amount? Carrying amount of…
A: Future taxable amount is the amount which increase tax liability in future and for that create…
Q: To arrive at the accumulated taxable income, which of the following items does not represent a…
A: The Accumulated Adjustments Account (AAA) is a balance sheet account that contains the net…
Q: a. Compute XYZ's taxable income. Taxable income
A:
Q: MC: Topic: Income Taxation Under this income taxation scheme, the full amount of tax is withheld by…
A: Taxes are the amounts due to be paid to government on account of income earned or on sale of goods…
Q: the purpose of grossing up of Interests in calculating taxable income from Int
A: Taxable income refers to the sum value of money gained by an entity on which the government implies…
Q: income of the trust to beneficiaries is considered as a. Taxable b. Allowable
A: The question is related to distributed income of the trust to beneficiaries. A trust is an…
Q: 26. Which of the following differences would result in future taxable amounts? * a. Expenses and…
A: Deferred Tax Liability:The company record deferred liabilities when there's a short lived difference…
Q: How is the taxable gains arc calculated?
A: Capital gain: A capital gain is the profit resulting from the sale of capital asset as a stock,…
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Q: rent income,
A: Option a is wrong because final income tax is the ultimate tax liability on the whole income. Option…
Q: types of payments that are taxable/not taxable for FUTA?
A: Federal unemployment tax is a tax paid by the employers to the employees who have left the company…
Q: - unearned income
A: Unearned income is the income for which right to recognize income is not established yet.
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A: Asset are considered to be capital items as they are held for more than a year and provide economic…
Q: define what is taxable temporary difference
A: Deferred tax liability: Deferred tax liability is created, if the tax obligation (income tax…
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A: Compensation is the income which is earned by the person from the employment work means the…
Q: When a business calculates taxable income from gross income, which ofthe following is true? a.…
A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…
Q: Which of the following situations will not result to a future taxable amount? O Tax base of the…
A: Future taxable amount appears when in current year, the income is recognized in the financials but…
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A: Deferred Tax Liability or Deferred Tax Asset is an integral component of the financial statements.…
Q: Define each of the following terms: i. Capital gain or loss; tax loss carryback and carryforward
A: The capital gain or loss is computed as the difference in the sale price and purchase price of an…
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A: Answered
Q: Compute for the taxable income
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Q: What is BIR Form
A: BIR Form No. 1701, Also known as, Annual Income Tax Return For Individuals (including MIXED Income…
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Q: Which constitutes a taxable item of gross income? * Compensation for personal injuries Gain from…
A: Gross income: Gross income is the sum of all wages, salaries, profits, interest payments, rents, and…
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- Surgimed Ghana Ltd. acquired a property for GH¢4 million with annual depreciation of GH¢300,000 on the straight line basis. At the end of the previous financial year at 31st December, 2019, when accumulated depreciation was GH¢1 million, a further amount relating to an impairment loss of $350,000 was recognised, which resulted in the property being valued at its estimated value in use. On 1st May, 2020, as a consequence of a proposed move to new premises due to the COVID 19 restrictions, the property was classified as held for sale. At the time of classification as held for sale, the fair value less costs to sell was GH¢2·4 million. On 1st July, 2020, the property market had improved and the fair value less costs to sell was reassessed at GH¢2·52 million and at the year-end on the 31st December, 2020, it had improved even further, so that the fair value less costs to sell was GH¢2·95 million. The property was sold on 5th January, 2021 for GH¢3 million. Required The…Surgimed Ghana Ltd. acquired a property for GH¢4 million with annual depreciation of GH¢300,000 on the straight line basis. At the end of the previous financial year at 31st December, 2019, when accumulated depreciation was GH¢1 million, a further amount relating to an impairment loss of $350,000 was recognised, which resulted in the property being valued at its estimated value in use. On 1st May, 2020, as a consequence of a proposed move to new premises due to the COVID 19 restrictions, the property was classified as held for sale. At the time of classification as held for sale, the fair value less costs to sell was GH¢2·4 million. On 1st July, 2020, the property market had improved and the fair value less costs to sell was reassessed at GH¢2·52 million and at the year-end on the 31st December, 2020, it had improved even further, so that the fair value less costs to sell was GH¢2·95 million. The property was sold on 5th January, 2020 for GH¢3 million.RequiredThe directors of Surgimed…Rahara Ltd purchased a piece of equipment for £600,000 on the 1st January 2021. The equipment is expected to have an economic life of 5 years and will have no residual value. Depreciation is calculated on a straight-line basis over the life of the asset. The company received a government of £200,000 towards the purchase of the equipment. The financial year end of the company is December 31st each year. Required: Show the relevant extracts from the financial statements for the years ended 31/12/21 & 31/12/22 under each of the two allowable methods of presentation.
- Surgimed Ghana Ltd. acquired a property for GH¢4 million with annual depreciation of GH¢300,000on the straight line basis. At the end of the previous financial year at 31st December, 2019, whenaccumulated depreciation was GH¢1 million, a further amount relating to an impairment loss of$350,000 was recognised, which resulted in the property being valued at its estimated value in use.On 1st May, 2020, as a consequence of a proposed move to new premises due to the COVID 19restrictions, the property was classified as held for sale. At the time of classification as held for sale,the fair value less costs to sell was GH¢2·4 million. On 1st July, 2020, the property market hadimproved and the fair value less costs to sell was reassessed at GH¢2·52 million and at the year-endon the 31st December, 2020, it had improved even further, so that the fair value less costs to sell wasGH¢2·95 million. The property was sold on 5th January, 2021for GH¢3 million.RequiredThe directors of Surgimed Ghana Ltd.…Alankar Ltd. commenced business on 1st January 2018, when they purchased plant and equipment for 9,00,000. They adopted a policy of charging depreciation at 15% per annum on diminishing balance basis and over the years, their purchases of plants have been as follows01/01/2019 - Rs. 3,50,000 01/01/2022 - Rs. 4,00,000 On 1/1/2022 it was decided to change the method and rate of depreciation to straight line basis. On this date remaining useful life was assessed as 6 years for all the assets purchased before 1/1/2022 with no scrap value and 10 years for the asset purchased on 1/1/2022. Prepare depreciation schedule for 5 years. Books of accounts are closed on 31st December every year.NAC Ltd acquired a brand new property (land and buildings) Calculate the amounts recognised in profit or loss and other comprehensive income extract for million (including GH¢15 million in respect of the land). The asset was revalued on 31 the years ended 31 December 2017 and 31 December 2018. buildings element was depreciated over a 50-year useful life to a zero residual value. The useful December 2017 to GH¢43 million (including GH¢16.6 million in respect of the land). The life and residual value did not subsequently need revision. On 31 December 2018 the property was revalued downwards to GH¢35 million as a result of the recession (including GH¢14 on 1 January 2016 for GH¢40 million in respect of the land). Required:
- Gray Ltd purchased a machine on 1 April 20X2 for GHS 16,000. In the years ended 31 March 20X3 and 31 March 20X4, Gray Ltd depreciated the machine at 25% per annum on a straight-line basis. On April 20X4, the machine was revalued to GHS 12,000 with its estimated useful life being unchanged. In accordance with IAS 16 Property, Plant and Equipment, what was the effect of this revaluation on Gray Ltd’s profit for the year ended 31 March 20X5?Stag, a public limited company, is preparing its financial statements for the year ending 31 December 2021. The exhibits contain information relevant to the question Exhibit 1– Accounting for Impairment Stag plc, which has a 31 December year end, acquired an item of property, plant, and equipment (PPE) on 1 January 2019 for £50,000 for which it applies the revaluation model. The asset is depreciated on a straight-line basis over its useful economic life of ten years (the assumed residual value is nil). On 1 January 2020, it was established that the gross replacement cost of the asset (i.e. the gross revalued amount of the asset before any depreciation is deducted) was £60,000. On 31 December 2021, there are indications that the asset is impaired, an impairment test is carried out, and the recoverable amount at that date is estimated as £30,000. question: Using Exhibit 1, explain the impact of the transactions on the financial statements 2020 and 2021. (Hint: you can show the double…During the year ended 30 June 2018, a company's revaluation reserve increased from R300 000 to R380 000 as a result of a property revaluation. At the start of that financial year, the company's property had been valued at R810 000. Assuming that no property was disposed of during the year, which of the following statements is true? Select one: a. The property's revalued amount was R1 190 000. b. The property's revalued amount was R1 310 000. c. The property's revalued amount was R380 000. d. The property's revalued amount was R890 000.
- Select financial information for Logistical Corp. as at December 31, 20X6, follows: Please find the attached image Additional information is as follows: • During the year, Logistical sold equipment for proceeds of $50,000. The equipment had a cost of $80,000 and accumulated depreciation of $35,000.• During the year, a review of Logistical’s goodwill was completed, and it was determined that the asset was impaired and should be written down by $3,000.• Logistical did not purchase any additional investments in the year. Any changes in the fair value of investments have been adjusted through other comprehensive income. These securities are not cash equivalents.• During the year, a new lease was signed for equipment that had a fair market value of $45,000. Depreciation expense for the year totalled $1,000. The new lease was signed in the year, which required a $7,000 payment at the start of the lease.• Logistical elects to classify any interest paid and dividends paid as financing…Hayday PLC. Trial Balance as at 31st December 2021 is shown below: £s Revenue Administrative expenses 237,150 175,200 Selling and Distribution expenses Legal and Professional expenses Allowance for receivables - 31/12/2021 81,150 276,750 Inventories - finished goods -31/12/20 Work in Progress 31/12/20 49,123 Inventories - Raw materials at cost 31/12/20 162,600 Purchases - Raw materials 1,501,062 Carriage inwards - raw materials 15,570 Manufacturing wages 187,500 Ordinary shares issued 900,000 of £0.50 8.4% cumulative preference shares 150,000 of £1 each Revaluation surplus Share premium General reserve Retained earnings 31/12/20 Patents and trademarks Freehold property at cost Leasehold property at cost Amortisation of leasehold property - 31/12/20 Plant & Equipment at cost Accumulated depreciation - plant and equipment - 31/12/20 Furniture & Fittings at Cost Accumulated depreciation - furniture & fittings 31/12/20 Motor Vehicles at cost Accumulated depreciation - motor vehicles…During the year ended 30 June 2023, CoCo Berhad had the following transactions: a. In July 2022, CoCo Berhad acquired a building for RM800, 000 with an estimated useful life of 20 years. It is the company's policy to depreciate the building on a straight line basis. On 30 June 2023, the building had been revalued to RM950, 000. It is the company's policy to provide a full year's depreciation in the year of purchase and none in the year of disposal. For tax purposes, initial allowance of 10% and annual allowance of 3% are given for such buildings. The company has no intention to dispose the revalued building. b. CoCo Berhad had trade receivables of RM1, 500, 000 and an allowance for doubtful debts of 10% has been made for the year. Income tax rate is 25% for the year ended 30 June 2023. Required: Calculate the deferred tax asset or deferred tax liabilities as at 30 June 2023 arising from the above transactions. Please step by step answer