Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN: 9781285595047
Author: Weil
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Question
error_outline
This textbook solution is under construction.
Students have asked these similar questions
OMG is in a country which has a capital gains tax, conducted the following transactions: a. Purchased a building in February 2018 for $26,000,000. In March 2019, the companyspent $2,000,000 to install solar panels for electricity in the building. The building was sold for $28,500,000 in 2021. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,500,000. b. A motor vehicle was purchased for $5 million on January 1, 2018. The vehicle was sold in 2021 for $4.5 million. c. Bought an antique painting for $3.5 million in 2019. The painting was sold in 2021 for $10 million. d. Purchased a government bond for $5,000,000 in 2018 and sold it for $7,500,000 in 2021.The company is entitled to an Annual Exemption of $500,000. Capital losses as of 1 January 2021 were $1,500,000. Calculate the capital gains tax in 2021, assuming a capital gains tax of 15%.
Part CJohn Peter is aware that there is no Capital Gains tax in Jamaica.…
I need a relevant" source or sections "concerning GST return on the following question please under Australian Taxation Law
Bowens Pty Ltd is a building materials supplier in Victoria. Bowens Pty Ltd has an annual turnover of$24 million, and works under the accrual method of accounting. Bowens Pty Ltd purchases concretemixer for $660 each from Builder’s Choice Pty Ltd, a company in Geelong with an annual turnover ofaround $21 million, and works under the accrual method of accounting. Bowens Pty Ltd plans to sellthe concrete mixers at a 200% mark-up to its customers. In October last year it purchased 110 concretemixers but in December they discovered that 12 of the concrete mixers were faulty and subsequentlyreturned these faulty concrete mixers to the manufacturer, obtaining a full refund. Assume both applythe accrual method of accounting.Required:With reference to relevant laws, discuss the GST consequences of this arrangement for both BowensPty Ltd and Builder’s Choice Pty Ltd.
OMG is in a country which has a capital gains tax, conducted the following transactions:
a. Purchased a building in February 2018 for $26,000,000. In March 2019, the company spent $2,000,000 to install solar panels for electricity in the building. The building was sold for $28,500,000 in 2021. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,500,000.
b. A motor vehicle was purchased for $5 million on January 1, 2018. The vehicle was sold in 2021 for $4.5 million.
c. Bought an antique painting for $3.5 million in 2019. The painting was sold in 2021 for $10 million.
d. Purchased a government bond for $5,000,000 in 2018 and sold it for $7,500,000 in 2021.
The company is entitled to an Annual Exemption of $500,000. Capital losses as of 1 January 2021 were $1,500,000.
Calculate the capital gains tax in 2021, assuming a capital gains tax of 15%.
Knowledge Booster
Similar questions
- Deere Company (DE) manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deeres credit division loans money to customers to finance the purchase of their farm and construction equipment. The following information is available for three recent years (in millions except per-share amounts): 1. Calculate the following ratios for each year. Round ratios and percentages to one decimal place, except for per-share amounts, which should be rounded to the nearest cent. a. Return on total assets b. Return on stockholders' equity c. Earnings per share d. Dividend yield e. Price-earnings ratio 2. Based on these data, evaluate Deeres profitability.arrow_forwardPart BPTI Inc., located in a country which has a capital gains tax, conducted the followingtransactions:a. Purchased a building in February 2018 for $26,000,000. In March 2019, thecompany spent $2, 800,000 to install solar panels for electricity in the building. Thebuilding was sold for $40,000,000 in 2021. The annual maintenance cost was$500,000. The cost of advertising the sale of the building and the legal feesamounted to $1,200,000.b. A motor vehicle was purchased for $5 million on January 1, 2018. The vehicle wassold in 2021 for $4.5 million.c. Bought an antique painting for $3.5 million in 2019. The painting was sold in 2021for 1 million.d. Purchased a Government bond for $5,000,000.The company is entitled to Annual Exemption of $500,000. Capital losses as at 1 January2021 was $7,500,000.Required:Calculate the capital gains tax in 2021, assuming a capital gains tax of 20% If PTI Inc. were resident in Jamaica, what would the balancing adjustment be on the sale of the motor…arrow_forwardDamian is an entity which prepares financial statements, in accordance with International Financial Reporting Standards (IFRS), to 30 September each year. On 1 April 2018, Damian accepted delivery of a large and complex machine from a supplier. The agreed purchase price for the machine was £2 million. Damian received 10% trade discount. On 1 April 2018, Damian incurred direct costs of £50,000 in handling the machine and £25,000 in installing the machine at its premises. Although the machine was ready for use from 1 April 2018, Damian did not bring the machine into use until 30 April 2018. During April 2018 Damian incurred costs of £200,000 in training relevant staff to use the machine. The directors of Damian estimate that the machine is capable of being usefully employed in the business until 31 March 2023, and that it will have no residual value at that date. Damian uses the straight-line method for calculating the depreciation. On 31 March 2023, Damian will be legally required…arrow_forward
- Please provide "section " for the follwing questions under Australian Taxation Law Bowens Pty Ltd is a building materials supplier in Victoria. Bowens Pty Ltd has an annual turnover of $24 million, and works under the accrual method of accounting. Bowens Pty Ltd purchases concrete mixer for $660 each from Builder’s Choice Pty Ltd, a company in Geelong with an annual turnover of around $21 million, and works under the accrual method of accounting. Bowens Pty Ltd plans to sell the concrete mixers at a 200% mark-up to its customers. In October last year it purchased 110 concrete mixers but in December they discovered that 12 of the concrete mixers were faulty and subsequently returned these faulty concrete mixers to the manufacturer, obtaining a full refund. Assume both apply the accrual method of accounting.Required: With reference to relevant laws, discuss the GST consequences of this arrangement for both Bowens Pty Ltd and Builder’s Choice Pty Ltd.arrow_forwardPTI Inc., located in a country which has a capital gains tax, conducted the following transactions: a. Purchased a building in February 2018 for $26,000,000. In March 2019, the company spent $2, 800,000 to install solar panels for electricity in the building. The building was sold for $40,000,000 in 2021. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,200,000. b. A motor vehicle was purchased for $5 million on January 1, 2018. The vehicle was sold in 2021 for $4.5 million. c. Bought an antique painting for $3.5 million in 2019. The painting was sold in 2021 for 1 million. d. Purchased a government bond for $5,000,000 in 2018 and sold it for $7,500,000 in 2021.The company is entitled to Annual Exemption of $500,000. Capital losses as at 1 January 2021 was $3,500,000. Calculate the capital gains tax in 2021, assuming a capital gains tax of 20%.arrow_forwardGoMo Ltd is a UK registered company which commenced trading in the UK on 1 March 2020 as a manufacturer of mopeds (small motorbikes). GoMo Ltd prepared its first accounts for the period 1 March 2020 to 31 December 2020. The following information is available: Trading profit The tax adjusted trading profit based on the draft accounts for the ten-month period ended December 2020 is £944,291. This figure is before making any adjustments required for: 1.Capital allowances. 2.Tax adjustments required for research & development which included payroll expenses of £3,256 and capital expenditure as shown in plant and machinery below (the company is considered small for R&D purposes); 3.Advertising expenditure of £10,280 incurred during February 2020, just before the trade commenced. This expenditure has not been deducted in arriving at the tax adjusted trading profit for the period ended 31 December 2020. 4.Non-trade loan relationships. Plant and machinery The…arrow_forward
- Taxation theory practice and law Bowens Pty Ltd is a building materials supplier in Victoria. Bowens Pty Ltd has an annual turnover of$24 million, and works under the accrual method of accounting. Bowens Pty Ltd purchases concretemixer for $660 each from Builder’s Choice Pty Ltd, a company in Geelong with an annual turnover ofaround $21 million, and works under the accrual method of accounting. Bowens Pty Ltd plans to sellthe concrete mixers at a 200% mark-up to its customers. In October last year it purchased 110 concretemixers but in December they discovered that 12 of the concrete mixers were faulty and subsequentlyreturned these faulty concrete mixers to the manufacturer, obtaining a full refund. Assume both applythe accrual method of accounting.Required:With reference to relevant laws, discuss the GST consequences of this arrangement for both BowensPty Ltd and Builder’s Choice Pty Ltdarrow_forwardthe following information was drawn from the balance sheets of the kansas and montana companies: current assets: kansas-54,000 montana- 76,000 current liabilites: kansas-27000 montana-30400 a. compute the current ration for each company. b. which company has the greater likelihood of being able to pay its bills? c. assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return on assets ratio?arrow_forwardHalwings Group Ltd, a company operating in Kenya has the following information as at 1st December 2020; The company made a profit before tax of Ksh. 14,000,080 in the past 12 months of accounting -The company made a net book loss of Ksh.1,100,050 in the year 2019 -The company engaged in consultancy services in the year 2020 where they were paid Ksh. 5,000,000 -The company supplied vaatable goods worth Ksh. 3,500,000 and Ksh. 9,000,000 in the years 2019 and 2020 respectively -The company is seeking to invest Ksh. 7,000,000 in the coming year in a foreign country and in a different line from what they are dealing with in Kenya Required: (I) Calculate the different taxes due from the company as at the close of the year 2020 (ii) Advise the company concerning their planned investment in terms of the taxation concept of incvestment.arrow_forward
- 1. In 2020, X Corporation had the following data: Sales of 1M and cost /expenses of 500,000. Can we apply the 8% rate in the computation of income tax? 2. A, Canadian citizen living in Manila, has the following income in 2019: interest income from loan granted to resident of Cebu amounting to 50,000; salary for services rendered in Italy of 100,000; sale of personal property with gain of 300,000 (located in Manila); rental income from properties located in Japan of 100,000. What is the income tax due of A under the GTR? 3. Asta, non-resident alien not engaged in business in the Philippines, has the following income for 2019: Business income in USA of 7,000,000 and; Other income of 2,000,000 earned in the Philippines. How much is the income tax due of Asta? 4. In 2019, A, employee of MCDO Corp, has an annual salary of 2.5M only. Can A avail the 8%?arrow_forwardSepakat Bhd (Sepakat) is a manufacturing company, incorporated in Malaysia since year 2014. The following information are extracted from the financial accounting record of Sepakat for the year ended 31 December 2018.1. During the year, depreciation expense and capital allowance for plant were RM800,000 and RM890,000 respectively. At the end of the year, the carrying amount of plant was RM6,100,000 and tax written down was RM3,680,000.2. A research and development cost amounted to RM2,000,000 incurred during year 2018. Sepakat capitalises product development cost and amortises them over the expected useful lives of the products. Amortisation of product development cost for year 2018 was RM600,000. As at 31 December 2017 and 2018, the product development cost (intangible asset) were RM4,000,000 and RM5,400,000 respectively. Current tax laws allows all research and development costs to be written off immediately in computing taxable profit.3. Sepakat maintains a provision for warranty…arrow_forwardSepakat Bhd (Sepakat) is a manufacturing company, incorporated in Malaysia since year 2014. The following information are extracted from the financial accounting record of Sepakat for the year ended 31 December 2018.1. During the year, depreciation expense and capital allowance for plant were RM800,000 and RM890,000 respectively. At the end of the year, the carrying amount of plant was RM6,100,000 and tax written down was RM3,680,000.2. A research and development cost amounted to RM2,000,000 incurred during year 2018. Sepakat capitalises product development cost and amortises them over the expected useful lives of the products. Amortisation of product development cost for year 2018 was RM600,000. As at 31 December 2017 and 2018, the product development cost (intangible asset) were RM4,000,000 and RM5,400,000 respectively. Current tax laws allows all research and development costs to be written off immediately in computing taxable profit.3. Sepakat maintains a provision for warranty…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub