Calculate the taxable benefit.
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Jackie, a higher-paid employee, has a 1000cc, diesel van which was first registered in 2017 when it had a list price of £20,000 and produces emissions of 95g/km of carbon dioxide. Fifty percent of Jackie’s mileage was for business purposes and she makes no contributions towards the cost of the van she has the van for the whole year and has a satellite navigation system fitted as an accessory to the van (not standard) costing £250.
Calculate the taxable benefit.
A £3,170
B £3,200
C £3,430
D £3,490
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- Cook is a teacher. His job at a boarding school requires him to live in a house in the school grounds. The house cost £70000 three years ago and its annual value is £650. In 2020/21 the company pays an electricity bill of £550, a gas bill of £400, a gardener’s bill of £750 and redecoration costs £1800. Cook makes a monthly contribution of £50 for his accommodation. He earns a gross salary of £28850 and £1450 occupational pension contributions. Requirement: Calculate Cook’s taxable employment income for 2020/21.Xavier runs a florist shop. Her assistant goes out everyday in the van delivering flowers. The van accumulates high mileage quickly and Xavier usually replaces it after 3years. The van cost £10,100 on 1 June 2017 and Xavier has depreciated it on the reducing balance basis at 35% per year for 3 years. She sells it on I June 2021 for £3,000. Xavier year end is 31 May, depreciation is calculated annually at the year end. What is the profit or loss on the sale of the van?James owns a framing business, Frames-4-U, that frames artworks, prints and photos for clients. He purchased equipment for R100 000 with the intention of using it to assist him to frame the art of his clients. The expected useful life of the equipment is five years. The supplier of the equipment is in Johannesburg, and James had to pay for transport from the supplier to his workshop in Cape Town. This cost R5 000. The workers had to offload the equipment and carry it to the correct location in the workshop and James paid them R500 for this task. You are required to a. Explain to James what type of asset the equipment will be classified in the accounting records of Frames-4-U. In your answer you should also give the definition of the classification of the asset. (...) b. Calculate the total cost of the equipment he should use to debit the equipment account. Give a reason to explain to James why you calculated the cost is this manner.
- Steven John owns a cab for which he purchased a Rs. 18,000 operating licence two years ago. Mr. John makes Rs. 36,000 per year as an individual, but has the option of selling the cab and permit for Rs. 73,000 and working as a dispatcher for Santino Taxi Co. For a 40-hour week, the dispatcher role earns Rs. 31,000 per year. Mr. John works about 55 hours each week driving his own cab. He will invest Rs. 73,000 if he sells his firm and can make a 10% return. Needed 1. Calculate the opportunity cost of owning and managing your own firm. 2. Should Mr. John sell the cab and take the dispatcher post merely on financial grounds? 3. Discuss the qualitative and quantitative elements that Mr. John should take into account.Julie has been provided a diesel car. The list price of the car when new was £19,000. CO2 emission is 99g/km. The car was provided throughout the tax year 21/22. In addition to private use of the car, private fuel was also paid by the employer. What is fuel benefit for in 2021/22? £4,370 £0 £5,904 £19,000Joe is self-employed in a store that has a rental value of R500 a month which he pays, but he can vacate the building without giving notice. His other expenses are R100 a month for maintenance. He makes R25 000 a year on net sales (total revenue minus the wholesale cost of the product). If he quit his job and worked the same number of hours elsewhere at a job he liked equally well, he estimates that he could make R20 000 a year. No one else can be hired to work in the store. Suppose that Joe had a long term lease which requires him to pay the rent even if he doesn't operate the store. What should Joe do?
- Natalia makes colorful beaded necklaces and sells them at a local farmer's market. Natalia currently sells her necklaces for $40 each. She spends approximately $18 on the materials (beads, wire, and clasp) and $2 on packaging for each necklace. She pays annual fixed costs of $4,180 ($3,500 for space at the farmer's market, $180 for licenses and permits, and $500 annual depreciation on tent, display cases, and signage). a) How many necklaces does Natalia need to sell in 2021 to break even? necklaces b) How many necklaces does Natalia need to sell in 2021 to earn a profit of $25,000? necklaces c) Natalia's best guess is that she will sell 1,500 necklaces in 2021. If she's correct, what is Natalia's expected 2021 profit? d) Natalia estimates that if she reduces her selling price by 15% in 2021, she will sell 20% more necklaces. What is Natalia's expected profit if she reduces her selling price by 15%? Natalia estimates that if she instead increases her selling price by 15% in 2021, she…Mark is a company director. His monthly salary is £8,000. During the year 2020-21, he is provided with a petrol-engine car with an emission rating of 112g/km. The car had a list price when new of £28,000 and was registered on 5 February 2019. All fuel and other related costs are paid by the company. The company also provides each of its senior management staff with private insurance cover of £1,800 yearly. Calculate the NICs payable with regard to Mark for 2020-21. Please show all working out in accordance to 2020-21 tax rates.Candy purchased a 3 bedrooms house in St Kilda on the 1’s March 2015 for the cost of$1.3M. She paid a stamp duty on the transaction for $74,750. She also incurred legal fees of$3,500. She then rent the apartment out straight away for the amount of $30,000/year net.In the year of 2017, she renovated the kitchen and bathroom for the cost of $150,000 tomake the house looks more modern.Candy finally sold the house in November 2019 for $2.15M, incurring legal costs of $4,500and agent’s commission of $40,000.Candy also incurred interest on the amount borrowed to purchase the property of $120,000and council rates totalling $20,000Required:• Calculate the cost base for this asset• Calculate the capital gain or loss for the disposal of the asset• Calculate Candy’s assessable income for Income year 19/20 assuming she made a salaryof $90,000, net rental ncome of $30,000 an capital loss of $4,250 from the sale of someshares (purchased 10 years ago)• Would your answer will be different if Candy…
- Jane has a full‐time job employed as a teacher, but is an avid DIY renovator. In December 2015 she bought a bungalow, repainted it inside and out, and carried out a “makeover” of the garden while living in it. A real estate agent approached her and convinced her that she could make a quick profit if she put the house on the market. She did this in February 2016 and sold it for $100,000 profit after expenses. Encouraged by this, Jane plans to repeat the exercise on a regular basis. She asks you for tax advice, as she has heard that house sales can be taxable in some circumstances. What are the tax rules that apply specifically for sales of residential property? Will any of the exemptions apply to this sale or to future sales that Jane might make?Sam is self-employed and prepares accounts annually to 5 April. At 6 April 2022, the written down value brought forward in the main pool was £26, 000. During the year to 5 April 2023, he purchased a car with emissions of 45 g/km for £19, 200 and another car with emissions of 104 g/km for £25, 600. What are the maximum capital allowances that Sam can claim for the year to 5 April 2023? Question 6Answer a. £12, 744 b. £25, 416 c. £9, 672 d. £28, 488Betty Boop started a small toy factory, Boopy Doop, Inc., in her garage and incorporated it in March of 2014 as a calendar-year corporation. At that time, she began using her personal computer and tools solely for the business as part of her contribution to the corporation. The computer cost $2,700 but had a fair market value of only $900 at conversion and the tools, which had cost $1,500, were valued at $1,100. During 2014, Boopy Doop, Inc. purchased two machines: Gadget 1, purchased on May 2, cost $24,000; Gadget 2, purchased on June 5, cost $40,000. The corporation expensed Gadget 1 under Section 179. The computer, tools, and Gadget 2 were depreciated using accelerated MACRS only. The corporation did not take any depreciation on the garage nor did Betty charge the business rent because the business moved to a building purchased by Boopy Doop, Inc. for $125,000 on January 5, 2015. On January 20, 2015, Boopy Doop, Inc. purchased $4,000 of office furniture and on July 7, it purchased…