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- Lisa is a wholesaler of DIY kitchen fittings. In the year ended 28 February 2021 her business transactions included the following: Purchase on credit of goods for resale at a cost of £13,100 Drawings by Lisa of £10,000 Payment of interest on a business bank overdraft of £550 Sale of a non-current asset for £7,000. The asset had cost £23,000 and accumulated depreciation at the date of sale was £18,660. For each transaction show the impact on cash, other assets and liabilities and the impact on profit.Timothy has been trading for many years preparing his accounts to 31 December eachyear. He decided to change his accounting date to 30 June. His first period prepared tonew date was 1 January 2019 to 30 June 2019, which showed a profit of £34,320. Theprevious year ending 31 December 2018 showed a profit of 65,410. On 30 April 2021 hedecided to pass his business to his son and retire.His business profits were as follows:i. £72,980 for year ended 30 June 2020,ii. £46,760 for period ended 30 April 2021.He had overlap profits from the first periods of trading of £6,120 – which is a profit for 2months. Required:Calculate Timothy's trading income for all tax years starting from 2018-19.Nicholas works for Computer Specialists Ltd as a salesman. He is provided with a car that cost the company $45,000 on 1 May 2021. Nicholas used the car from the time that his employer acquired the car. During the FBT year ended 31 March 2022 Nicholas travelled 35,000 km in the car. The car's logbook indicates that the business percentage is 80%. The total operating costs including deemed interest and depreciation are $14,000. Nicholas paid $2,000 of the operating costs for the year ended 31 March 2022. What is the taxable value of the car for the year ended 31 March 2022 using the operating cost basis formula method? a. $9,200 b. $2,950 c. $800 d. $2,800 e. $11,200 Justify your answer by providing calculations.
- Rowena is employed as an architect throughout 2020/21 and received the following income during the tax year 2020/21:i) Salary of £114,000 (after her employer had deducted PAYE of £39,950).ii) Her employer provides Rowena with a parking space at work. If Rowena had to payfor her own parking, close to her office, the annual cost would be £900 per annum.iii) Bankinterestof£400.iv) Building society interest of £220.v) Dividends from a UK company of £4,500.vi) Premium bond prize of £150.vii) Property income of £24,000.During the year, Rowena made a charitable donation of £1,000 under the Gift Aid scheme and she paid her annual £500 subscription to the architects’ professional body, which is approved by HMRC.Required (you must answer both parts (a) and (b) to this question):a) Prepare the income tax computation for Rowena for 2020/21, showing the incometax liability and the tax due to be paid.17 marksb) Appraise the UK income tax system with refence to Adam Smith’s canon of equity.Rose works as a quality in-charge in an equipment manufacturing firm in the UK. During the tax year 2019/20, she has earned income from different sources. She earned £88,800 through employment income. She is also doing a business through which she earned a taxable income of £16,000. She invested £82,000 in equity and earned £10,800 dividend income. In the year 2018, she made investment in business society and received £4,600 interest during this tax year. She also invested ISA and received interest income of £24,000. She has a taxable rental income of £4,000 from properties. Situation 1 You are required to calculate Rose’s income tax liability for the year 2019/20. Situation 2 Assume Rose has paid £4,000 towards a gift aid donation during the year 2019/10, re-assess her tax liability.Paul is an employee, but also has a small business. For the year ended 31st March 2024 his sales were £2, 500 and his running expenses were £460. He also bought a second-hand computer for use in his business for £200. His taxable trading income for the year will be: Question 14Select one: a. £2,500 b. £2, 040 c. £1,840 d. £1,500
- From 1 March 2021 to 28 February 2022, employee A used her own vehicle for business purposes. She received a travelling allowance of R20 000 per month for this purpose. She travelled a total of 65 000 kilometers during the year of which 45 000 kilometers was for private travel. She kept an accurate logbook during the period she received the travel allowance. She purchased a motor vehicle for R660 000 (including VAT) on 28 February 2020. Finance charges for the current year was R105 000 and insurance was R3 500 a month, fuel was R7 000 a month and maintenance was R12 000 for the period. Do not use R, brackets, spaces, signs or decimals (unless specifically instructed) The deemed cost per kilometer is R?? (calculate to 3 decimals) Blank 1 Travel allowance for the year: Blank 2 Wear and tear: Blank 3 Finance charges: Blank 4 Insurance: Blank 5 Fuel: Blank 6 Maintenance: Blank 7 Actual cost per kilometer in Rand (calculate to 3 decimals): Blank 8 Possible deduction allowed for business…On July 1, 2017, Brent purchases a new automobile for $49,000. He uses the car 88% for business and drives the car as follows: 7,000 miles in 2017, 17,500 miles in 2018, 19,600 miles in 2019, and 14,000 miles in 2020. Determine Brent's basis in the business portion of the auto as of January 1, 2021, under the following assumptions: If required, round your computations to the nearest dollar. a. Brent uses the automatic mileage method. Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table. 2017: $fill in the blank 5d0ce403cfe2029_1 2018: $fill in the blank 5d0ce403cfe2029_2 2019: $fill in the blank 5d0ce403cfe2029_3 2020: $fill in the blank 5d0ce403cfe2029_4 Brent's adjusted basis in the auto on January 1, 2021, is $fill in the blank 5d0ce403cfe2029_5. b. Brent uses the actual cost method. [Assume that no § 179 expensing is claimed and that 200% declining-balance cost recovery with the half-year convention is…Give typing answer with explanation and conclusion Donna owns and operates a dress shop . In 2022, her total sales were$80,000. She refunded $950 to customers who were unsatisfied. Her cost of goods sold was $30,000 what is Donna's gross income on her schedule c, profit or loss from business (sole proprietorship)
- Peter is an accountant of Pucci (HK) Ltd (Pucci), a company managed and controlled in Hong Kong. The following information is available in respect of Peter for the year ended 31 March 2020:(1) Peter’s basic salary is $50,000 per month.(2) Pucci gave Peter a meal allowance of $20,000 to cover his entertainment expenses. He actually spent $15,000 and kept the balance.(3) On 1 May 2019, Peter was given an option to purchase 10,000 shares in Pucci (HK) Ltd at $8 per share. He exercised the option on 30 September 2019. The market price on 1 May 2019 and 30 September 2019 was $18 and $20 per share, respectively. He sold all the shares on 31 December 2019 when the share price reached $25 per share.(4) From 1 April 2018 to 30 September 2019, he was provided with a house owned by Pucci in Hong Kong, rent-free. From 1 October 2019, he lived in an apartment in Hong Kong which was purchased by him in August 2019.(5) Peter is studying on the Master of Accountancy programme at Lingnan University. He…During the fiscal year of 2023/24, John received £40 of income tax repayment interest relating to overpaid income tax from 2022/23. John has been employed part-time by Medical Support Ltd since 2013. He received the following remuneration package in 2023/24: · Salary £15,000 per year; · Eye test which would have cost £20, offered to all employees who use computers. · Private medical insurance costing the company £800, and which would have cost John £1,000 had he bought it directly from the insurers; and · From 1 June 2023, use of a van for significant private use with CO2 emissions of 130 g/km. The van had a list price of £10,000 and Medical Support Ltd paid for all John’s private fuel. John received £1,500 of dividends in January 2024 from an ISA. John has also run his own business as a sole trader for many years. Therefore, he has calculated his taxable trading profits for 2023/24 to be £20,600. In arriving at his taxable trading profits, he deducted the following amounts. · £200…On July 1, 2016, Rex purchases a new automobile for $43,000. He uses the car 84% for business and drives the car as follows: 12,000 miles in 2016, 30,000 miles in 2017, 33,600 miles in 2018, and 24,000 miles in 2019. Determine Rex's basis in the business portion of the auto as of January 1, 2020, under the following assumptions: If required, round your computations to the nearest dollar. a. Rex uses the automatic mileage method. Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table. 2016: $ 2017: $ 2018: $ 2019: $ Rex's adjusted basis in the auto on January 1, 2020, is $ b. Rex uses the actual cost method. [Assume that no § 179 expensing is claimed and that 200% declining-balance cost recovery with the half-year convention is used. The recovery limitation for an auto placed in service in 2016 is as follows: $3,160 (first year), $5,100 (second year), $3,050 (third year), and $1,875 (fourth year).] Compute his…
