Assume the following taxpayer information: The taxpayer is a South African manufacturing company (not asmall business corporation as defined) with a 31 March 2022 year of assessment. Calculate the taxablecapital gain/(loss) for the current year of assessment taking the BELOW information into account.Information pertaining to assets disposed of during the year:Events RDate disposed ofCapitalgain/(loss)Machine 1-disposed21 October 202165 000Machine 2- disposed15 February 202217 500Building - disposed18 August 2021(22 500)Note: There is an assessed capital loss from 2021 year of assessment of R57 000.O a R48 000O b. R20 400OC R2 40034*B135KRR(t a891015 16 1722 23 242930 3136 37 38Finish attempt22°C Maity Ty

Capital Gains/ Losses: When a company or individual sold or disposed off the capital assets more or…

ass corporation as defined) with a 31 March 2022 year of assessment. Calculate the tax inv(loss) for the current year of assessment taking the BELOW information into account. ation pertaining to assets disposed of during the year: Events D Date disposed of Capital gain/(loss) me 1-disposed 21 October 2021 65 000 ne 2-disposed 17 500 15 February 2022 18 August 2021 ng-disposed (22 500) There is an assessed capital loss from 2021 year of assessment of R57 000. 148 000 R20 400 R2 400 RRR

ass corporation as defined) with a 31 March 2022 year of assessment. Calculate the tax inv(loss) for the current year of assessment taking the BELOW information into account. ation pertaining to assets disposed of during the year: Events D Date disposed of Capital gain/(loss) me 1-disposed 21 October 2021 65 000 ne 2-disposed 17 500 15 February 2022 18 August 2021 ng-disposed (22 500) There is an assessed capital loss from 2021 year of assessment of R57 000. 148 000 R20 400 R2 400 RRR

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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3. On December 31, 2021, ABC has earned financial income before tax of P3,240,850. The tax rate applicable for the current and future years is 30%. For purposes of determining the taxable income, the following items are considered for analysis and reconciliation: a. On January 1, 2021, ABC has acquired a depreciable property amounted to P1,000,000. For financial accounting purposes, it uses straight line method to depreciate it and sum of the year's digit method for income tax purposes (with depreciation rate from year 1 to year 10 of 10/55, 9/55, 8/55, 7/55, 6/55, 5/55, 4/55, 3/55, 2/55, 1/55, respectively). The useful life of the asset is 10 years with no residual value. b. 3 years prepaid rent of P600,000 (P200,000 a year) paid December 31, 2021 that is applicable for the next 3 years starting 2022. c. Dividend income (received in cash) of P250,000 that is subject to 20% tax rate. d. Interest income on deposit (already credited to ABC's deposit account) of P150,000 with 20%…
The following information is available for Sandhill Corporation for 2024 (its firs year of operations). 1. 2. 3. 4. (d) Excess of tax depreciation over book depreciation, $37,200. This $37,200 difference will reverse equally over the years 2025-2028. Deferral, for book purposes, of $21,400 of rent received in advance. The rent will be recognized in 2025. Pretax financial income, $274,100. Tax rate for all years, 20%. X Your answer is incorrect. Compute the effective income tax rate for 2025. (Round answer to 1 decimal place, e Effective income tax rate 38.1 %
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Troy Ltd., at the end of 2023, its first year of operations, prepared a reconciliation between pre- tax accounting income and taxable income as follows: Pre-tax accounting income $300,000 Excess CCA claimed for tax purposes ... (600, 000) Estimated expenses deductible when paid $200,000 Use of the depreciable assets will result in taxable 500,000 Taxable income ... amounts of $200,000 in each of the next three years. The estimated expenses of $500,000 will be deductible in 2026 when settlement is expected to be made. The enacted tax rate is 25% and is to increase to 30%, starting in 2024. Instructions a) Prepare a schedule of the deferred taxable and deductible amounts. b) Prepare the required adjusting entries to record income taxes for 2023
1. Pretax accounting income was S70 million and taxable income was $8 million for the year ended December 31, 2021. 2. The difference was due to three items: a. Tax depreciation exceeds book depreciation by $60 million in 2021 for the business complex acquired that year. This amount is scheduled to be $80 million in 2022 and to reverse as ($70 million) and ($70 million) in 2023 and 2024, respectively. b Insurance of $8 millian was paid in 2021 for 2022 coverage C. A $6 million loss contingency was accrued in 2021, to be paid in 2023. 3. No temporary differences existed at the beginning of 2021. 4. The tax rate is 25% Required: 1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry 2. Assume the enacted federal income tax law specifies that the tax rate will change from 25% ta 20% in 2023. When scheduling the reversal of the depreciation difference, you were uncertain as to how to deal with the fact that the difference will continue…
An entity reported pretax financial income of P8.000,000 for the current year. The taxable income was P7,000,000 for the current year. The difference is due to accelerated depreciation for income tax purposes. The income tax rate is 30% and the entity made estimated tax payment of P500,000 during the current year. The amount should be reported as current tax expense for the current year?
f2. Subject:- Accounting
6. On December 31, 2021, ABC has earned financial income before tax of P3,240,850. The tax rate applicable for the current and future years is 30%. For purposes of determining the taxable income, the following items are considered for analysis and reconciliation: On January 1, 2021, ABC has acquired a depreciable property amounted to P1,000,000. For financial accounting purposes, it uses straight line method to depreciate it and sum of the year’s digit method for income tax purposes (with depreciation rate from year 1 to year 10 of 10/55, 9/55, 8/55, 7/55, 6/55, 5/55, 4/55, 3/55, 2/55, 1/55, respectively). The useful life of the asset is 10 years with no residual value. 3 years prepaid rent of P600,000 (P200,000 a year) paid December 31, 2021 that is applicable for the next 3 years starting 2022. Dividend income (received in cash) of P250,000 that is subject to 20% tax rate. Interest income on deposit (already credited to ABC’s deposit account) of P150,000 with 20% applicable tax…
Subject : Accounting
Give me correct answer with explanation
The following facts relate to Sandhill Corporation. 1. Deferred tax liability, January 1, 2025, $33,000. 2. Deferred tax asset, January 1, 2025, $11,000. 3. Taxable income for 2025, $115,500. 4. 5. 6. 7. Cumulative temporary difference at December 31, 2025, giving rise to future taxable amounts, $253,000. Cumulative temporary difference at December 31, 2025, giving rise to future deductible amounts, $104,500. Tax rate for all years, 20%. No permanent differences exist. The company is expected to operate profitably in the future. (a) X Your answer is incorrect. Compute the amount of pretax financial income for 2025. Pretax financial income $ 116875
Rahul