Sayadid started a small sundry shop on 1 February 2015 and named it as Payar Store. He closes the shop's account every 30 September each year. On 31 January 2017, he changed his accounting period to 31 December every year. As the business progress well, his close friend was interested to join the business and contributed some additional funds to this store. Eventually, he converted Payar Store into a Limited Liability Partnership on 1 December 2018 with a new accounting period ended on 30 April 2020. A. REQUIRED: Determine the basis period for Payar Store and the new Limited Liability Partnership for the relevant years of assessment until the year of assessment 2020.

Sayadid started a small sundry shop on 1 February 2015 and named it as Payar Store. He closes the shop's account every 30 September each year. On 31 January 2017, he changed his accounting period to 31 December every year. As the business progress well, his close friend was interested to join the business and contributed some additional funds to this store. Eventually, he converted Payar Store into a Limited Liability Partnership on 1 December 2018 with a new accounting period ended on 30 April 2020. A. REQUIRED: Determine the basis period for Payar Store and the new Limited Liability Partnership for the relevant years of assessment until the year of assessment 2020.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 81TA

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