Part Il: ProbleHS 1. If the salary of an employee is 2,000 Birr and the tax Rate 15% and deduction = 142.50. Instruction: a. Calculate the income tax Income Tax (2,000 Birr x 15%)- 142.50 Birr= 157.50 Birr b. Record the payment of salary to the employee Salary expense 2000 Employment income tax 157.50 Cash 1842.5 C Record the payment of withholding tax to the tax authority Employment income tax 157.50 Cash 157.50 Assume that the revenue from Karamara Share Company is Br 2,000,000 during Tax Year ended Sene 30, 2012. Cost and Expense were Br 1,000,000 and Br S60,000, respectively. Determine the Taxable Business Profit and Compute the Business Profit Tax Liability of this Share Company. Mr. Ayub has a building that is available for rent The following are the details of the property let out He has let out for twelve months. Actual rent for a month is birr 2000, He paid 15% of the 2. 3. 1
Part Il: ProbleHS 1. If the salary of an employee is 2,000 Birr and the tax Rate 15% and deduction = 142.50. Instruction: a. Calculate the income tax Income Tax (2,000 Birr x 15%)- 142.50 Birr= 157.50 Birr b. Record the payment of salary to the employee Salary expense 2000 Employment income tax 157.50 Cash 1842.5 C Record the payment of withholding tax to the tax authority Employment income tax 157.50 Cash 157.50 Assume that the revenue from Karamara Share Company is Br 2,000,000 during Tax Year ended Sene 30, 2012. Cost and Expense were Br 1,000,000 and Br S60,000, respectively. Determine the Taxable Business Profit and Compute the Business Profit Tax Liability of this Share Company. Mr. Ayub has a building that is available for rent The following are the details of the property let out He has let out for twelve months. Actual rent for a month is birr 2000, He paid 15% of the 2. 3. 1
Chapter4: Income Tax Withholding
Section: Chapter Questions
Problem 3SSQ
Related questions
Question
Question 1 and 2
Transcribed Image Text:Part Il: ProbleHS
1. If the salary of an employee is 2,000 Birr and the tax Rate 15% and deduction = 142.50.
Instruction:
a. Calculate the income tax
Income Tax (2,000 Birr x 15%)- 142.50 Birr= 157.50 Birr
b. Record the payment of salary to the employee
Salary expense
2000
Employment income tax 157.50
Cash
1842.5
C Record the payment of withholding tax to the tax authority
Employment income tax 157.50
Cash
157.50
Assume that the revenue from Karamara Share Company is Br 2,000,000 during Tax Year ended
Sene 30, 2012. Cost and Expense were Br 1,000,000 and Br S60,000, respectively. Determine the
Taxable Business Profit and Compute the Business Profit Tax Liability of this Share Company.
Mr. Ayub has a building that is available for rent The following are the details of the property let
out He has let out for twelve months. Actual rent for a month is birr 2000, He paid 15% of the
2.
3.
1
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning