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Compute all taxes payable by Mr. Goodwill for year of assessment 2021 showing all relevant computations.

Compute all taxes payable by Mr. Goodwill for year of assessment 2021 showing all relevant computations.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question 1 Mr. Goodwill, a sole trader, presents you with the following information to file his income tax returns which became due and payable on March 15, 2022. Accounting Loss of Jamaican Two Hundred and Sixty Thousand Dollars (J$260,000) after charging the following: i. Depreciation ii. III. iv. V. $1,370,000 $50,000 monthly $1,500,000 Other relevant information presented to you by Mr. Goodwill are: The building from which he operates is a new, non-industrial one constructed of wood, purchased in 2021 for $800,000. vi. Rent relating to rental of business premises Drawings Salary for Mr. Goodwill of $2,000,000 per annum- P24 prepared by the accountant reflects that PAYE of $109,976 has been paid over to the Collector of Taxes on his behalf. (Note: Assume no other taxes have been paid for him) He has a trade vehicle, purchased in 2015 for JS1,500,000 and a private vehicle, purchased in 2021 for J$1,000,000. Both vehicles qualify for the maximum available capital allowance as appropriate. Required: Compute all taxes payable by Mr. Goodwill for year of assessment 2021 showing all relevant computations.
Transcribed Image Text:Question 1 Mr. Goodwill, a sole trader, presents you with the following information to file his income tax returns which became due and payable on March 15, 2022. Accounting Loss of Jamaican Two Hundred and Sixty Thousand Dollars (J$260,000) after charging the following: i. Depreciation ii. III. iv. V. $1,370,000 $50,000 monthly $1,500,000 Other relevant information presented to you by Mr. Goodwill are: The building from which he operates is a new, non-industrial one constructed of wood, purchased in 2021 for $800,000. vi. Rent relating to rental of business premises Drawings Salary for Mr. Goodwill of $2,000,000 per annum- P24 prepared by the accountant reflects that PAYE of $109,976 has been paid over to the Collector of Taxes on his behalf. (Note: Assume no other taxes have been paid for him) He has a trade vehicle, purchased in 2015 for JS1,500,000 and a private vehicle, purchased in 2021 for J$1,000,000. Both vehicles qualify for the maximum available capital allowance as appropriate. Required: Compute all taxes payable by Mr. Goodwill for year of assessment 2021 showing all relevant computations.
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