Principles Of Taxation For Business And Investment Planning 2020 Edition
Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
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Chapter 9, Problem 3IRP
To determine

Identify the issue for the situation given.

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MARU S.A. de C.V., a Mexican corporation that follows IFRS, has elected to use therevaluation model for its property, plant, and equipment. One of MARU’s machines waspurchased for 2,500,000 Mexican pesos (MXN) at the beginning of the fiscal year ended31 March 2010. As of 31 March 2010, the machine has a fair value of MXN 3,000,000.Should MARU show a profit for the revaluation of the machine?A. Yes.B. No, because this revaluation is recorded directly in equity.C. No, because value increases resulting from revaluation can never be recognized as aprofit.
Suppose that fabulous had purchased trucks for $400,000 which were used solely in the transportation of inventory purchased in different parts of the united states to U.S. customers. all transportation expenses, including depreciation deductions of $200,000 in respect of the trucks, were applied to reduce U.S.-source income. Fabulous then resells the used trucks for $410,000, thereby realizing income of $210,000, to a foreign purchaser that took title to the trucks in Peru. What is the source of the income realized on the sale of the trucks?
Moriah Corp, a VAT business imported 500 cars costing P600,000 each, excluding VAT. 375 cars were sold to the market for P975,000 (excluding vat) each and 125 were declared & distributed to stockholders as property dividend. Moriah used the acquisition cost of the cars as the basis of the output VAT on property dividend. How much is net VAT due or payable? (answer must all be numbers, no peso sign, no commas, no decimals and no extra spaces in between numbers)

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Principles Of Taxation For Business And Investment Planning 2020 Edition

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