Notes (1) Profit on sale of office equipment. The office equipment was purchased on 1 July 2015 for S10,000. Salvador estimated its effective life for taxation purposes at the time of purchase at 10 years. He uses the prime cost method. Sale proceeds - sale date 30 June 2017 Net book value basoed on accounting depreciation 3.000 Profit $5,000 2.000 (2) The Opening stock value for tax purposes was $19,000. The FIFO Method however produces the following results for the Do-It-Yourself Superannuation guides at the end of the year: Cost Price Replacement Price Market Selling Value 12,000 9,000 14,000 ) Withholding tax of $150 was paid in the US. (4) The company has a carry forward past year tax loss of $42,000. (5) The company has made PAYG Instalments of $150,000 during the year. REQUIRED Calculate Company's tax payable for the year ended 30 June 2017. QUESTION TWO Salvador Ryan is an accountant and the Director of his accounting practice, Darwin Taxation Services Pty Ltd. The following figures do not include GST. The company receipts and payments for the year ended 30 June 2017 are as follows: Receipts 600,000 25,000 17,000 Professional accounting fees Sales of Do-It-Yourself Superannuation guides Dividend received from an Australian company franked to 50% Interest on Bank Deposits Rental income from an investment property Profit on sale of office equipment (note 1) Dividend from shares in IIBM (USA) (3) 5,000 10,000 2,000 850 Раyments Office rent Cost of Do-It-Yourself Superannuation guides (note 2) Salary paid to employee secretary Train fare for travel to and from work Legal fees for preparing a new lease of the office Rates paid on abovementioned investment property Interest paid on loan to acquire the investment property Cost of painting the investment property immediately after purchasing the property Cost of replacing roof tiles on the investment property after the roof was damaged in a severe storm in February 2017 Cost of extending the bathroom in the investment property Cost of a new BMW for Salvador to use 100% for business purposes 14,000 10,000 38,000 1,000 1,000 2,000 15,000 5,000 1,000 15,000 136,000

Notes (1) Profit on sale of office equipment. The office equipment was purchased on 1 July 2015 for S10,000. Salvador estimated its effective life for taxation purposes at the time of purchase at 10 years. He uses the prime cost method. Sale proceeds - sale date 30 June 2017 Net book value basoed on accounting depreciation 3.000 Profit $5,000 2.000 (2) The Opening stock value for tax purposes was $19,000. The FIFO Method however produces the following results for the Do-It-Yourself Superannuation guides at the end of the year: Cost Price Replacement Price Market Selling Value 12,000 9,000 14,000 ) Withholding tax of $150 was paid in the US. (4) The company has a carry forward past year tax loss of $42,000. (5) The company has made PAYG Instalments of $150,000 during the year. REQUIRED Calculate Company's tax payable for the year ended 30 June 2017. QUESTION TWO Salvador Ryan is an accountant and the Director of his accounting practice, Darwin Taxation Services Pty Ltd. The following figures do not include GST. The company receipts and payments for the year ended 30 June 2017 are as follows: Receipts 600,000 25,000 17,000 Professional accounting fees Sales of Do-It-Yourself Superannuation guides Dividend received from an Australian company franked to 50% Interest on Bank Deposits Rental income from an investment property Profit on sale of office equipment (note 1) Dividend from shares in IIBM (USA) (3) 5,000 10,000 2,000 850 Раyments Office rent Cost of Do-It-Yourself Superannuation guides (note 2) Salary paid to employee secretary Train fare for travel to and from work Legal fees for preparing a new lease of the office Rates paid on abovementioned investment property Interest paid on loan to acquire the investment property Cost of painting the investment property immediately after purchasing the property Cost of replacing roof tiles on the investment property after the roof was damaged in a severe storm in February 2017 Cost of extending the bathroom in the investment property Cost of a new BMW for Salvador to use 100% for business purposes 14,000 10,000 38,000 1,000 1,000 2,000 15,000 5,000 1,000 15,000 136,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 31P

See similar textbooks