Sapphire Jewellery Pty Ltd (SJ) is a resident private company. During the 2023 income year, SJ recorded an accounting profit of $80,000 In addition to the transactions recorded in the financial statements, SJ noted the following: SJ sold shares held as an investment for $45,000. The shares were purchased in 2017 for $ 25,000 Calculate the taxable income of SJ for the 2023 income year. Question 2Select one: $100,000 $ 90,000 $60,000 $70,000

Sapphire Jewellery Pty Ltd (SJ) is a resident private company. During the 2023 income year, SJ recorded an accounting profit of $80,000 In addition to the transactions recorded in the financial statements, SJ noted the following: SJ sold shares held as an investment for $45,000. The shares were purchased in 2017 for $ 25,000 Calculate the taxable income of SJ for the 2023 income year. Question 2Select one: $100,000 $ 90,000 $60,000 $70,000

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 5P: Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of...

See similar textbooks

Similar questions

5. XYZ Pty Ltd had the following transactions relevant to its franking account during the year ended 30 June 2021. It pays tax at the rate of 30%. On the 1st July 2020 its franking account balance was $10,000 On 10 July 2020 it paid a dividend of $50,000 franked to 70% to its shareholders On the 30th July it paid Company Income Tax of $60,000. On 1 August 2020 it paid a dividend of $50,000 franked to 50% to its shareholders. Then on 1 March 2021 it paid a dividend of $30,000 franked to 90% to its shareholders. Required: Only advise on the consequences for XYZ Pty Limited NOT its shareholders.
1. What amount should be reported as income before tax in the financial statements? * 1. The financial statements of Kare-Kare Company for the calendar year ending December 31, 2021 are authorized for issue on March 30, 2022. Income before tax was computed at P50,000,000 before the following events occurred in the company: a. The company had investments in shares held for trading which were recorded at the fair value of P600,000 on December 31, 2021. During the period up to March 1, 2022, there was a steady decline in the fair value of all the shares in the portfolio, and on March 1, 2022, the fair value had fallen to P500,000. b. A customer owing the company P300,000 filed for bankruptcy on February 2, 2022. The company included in its financial statements an allowance for doubtful accounts pertaining to this customer of P100,000. c. A shipping vessel of the company with a carrying amount of P10,000,000 was destroyed at sea because of the missile fired by the Russian army which…
Can you please help me find what amount should be reported as income before tax in the financial statements? 1. The financial statements of Kare-Kare Company for the calendar year ending December 31, 2021 are authorized for issue on March 30, 2022. Income before tax was computed at P50,000,000 before the following events occurred in the company: a. The company had investments in shares held for trading which were recorded at the fair value of P600,000 on December 31, 2021. During the period up to March 1, 2022, there was a steady decline in the fair value of all the shares in the portfolio, and on March 1, 2022, the fair value had fallen to P500,000. b. A customer owing the company P300,000 filed for bankruptcy on February 2, 2022. The company included in its financial statements an allowance for doubtful accountsp ertaining to this customer of P100,000. c. A shipping vessel of the company with a carrying amount of P10,000,000 was destroyed at sea because of the missile fired by the…
Jock (LTD) is a manufacturer of Stationery. The Following information is given regarding Jock Ltd for 2021 and 2022 Income tax Expense for 2021 is R9 565 and for 2022 is R8 575 The Income tax for 2021 according to the final assessment for SARS is R9 800.00 Total Dividends declared for 2021 is R5 000. The dividends tax rate is 15% Prepare the journal entries for the year ended 31 December 2021 and 2022 (Include journal narrations)
Asda Ltd purchased shares of Simon plc. As of 30 June 2019, E50,000 was the Equity-Paid up Capital. Below are the key details: Acquired 10,000 shares on 30h June 2019 at £5 Fair Value of Shares on 30th June 2020 was £8 Fair Value of Shares on 30thJune 2021 was £7 All Shares were Sold on 30h June 2021. Tax Rate is 20%. You are required to Prepare Statement of Comprehensive Income and Statement of Changes in Equity (Both Extracts) for the Year ending 30th June 2021. Also show the Calculation of Gains.
Answer all questionsThe following information relating to Farasi ltd for the year ending 31st December 2019 has been availed. Profit before tax sh. 2,000,000Tax 600,000Preference dividends 300,000Ordinary dividends 500,000Ordinary share capital sh. 10 each 2,000,000Preference share capital sh. 20 each 1,000,000Share premium 800,000Retained earnings 3,000,000 In the year year 2020 the following took place. There was a bonus issue of 1:5 on 1/4/2020There was a rights issue of 1: 4 on 17/2020 at sh. 16. All the rights were taken up.An interim ordinary dividend of sh. 0.25 per share was declared on 12/10/2020.The dividend declared on 12/10/2020 was paid on 15/11/2020 Required:Compute the EPS for the year 2019.Prepare journal entries to record the transactions in 2020.
Blue Horizon pty Ltd, a resident company that was formed in 2009, has a 31 March financial year-end. The company distributed the following amounts/assets to its sole shareholder, Mr. Asmal, on 1 December 2022: - A cash distribution of R1 100 000; - An in specie distribution of trading stock with a market value of R600 000 (trading stock was acquired on 1 April 2022 at a cost price of R400 000); and - An in specie distribution of a building with a market value of R1 600 000 (the building was acquired on 15 June 2015 for R1 200 000 - the building did not qualify for any capital allowances) - The applicable company tax rate and dividend tax rate is 28% and 20% respectively. REQUIRED: 1 Calculate the normal tax consequences arising from the above distributions for Blue Horizon pty Ltd’s 2023 year of assessment. 2 Calculate the amount of dividends tax that Blue Horizon Ltd. is liable for.
Randall pic is a company that, during the year ended 31 December 2020, paid $25,000 debenture interest and paid an ordinary dividend of 8 pence per share on 1 million £1 ordinary shares. The retained profit for the year was $160,000. What was Randall pc's profit for the year? Select one: a.$215,000 $80,000 c.$240,000 d.$265,000
ABCD plc paid instalments of its corporation tax liability for the year ended 31 March 2017 as follows:a. 14 October 2016 £43,000b. 14 February 2017 £72,000c. 14 April 2017 £48,000d. 14 August 2017 £87,000The agreed corporation tax liability for the year was £294,000. ABCD plc paid the balance of £44,000 on 14/9/17.Required: State the amounts and periods for which interest will be due
Following is a list of investments owned by Martinez Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,200 $9.00 $8.20 FDY Ltd. 2,100 6.50 6.55 CTN Corporation 3,700 7.00 7.60 On January 15, 2021, Martinez sold the shares in CTN Corporation for $8.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…
Penguins Ltd had tax adjusted trading profits of £133,000 for the period ended 31 March 2021. Qualifying charitable donations of £8,000 were made on 1 January 2021. Corporate chargeable gains (net of allowable losses) for the period ended 31 March 2021 were £82,000. What is Penguins Ltd’s corporation tax liability for the period ended 31 March 2021? A. £42,370 B. £25,270 C. £40,850 D. £39,330
Taballa Ltd owns all the share capital of Amaroo Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2023 or 30 June 2024. (a) On 1 May 2023, Amaroo Ltd sold inventories costing $600 to Taballa Ltd for $1 200 on credit. On 30 June 2023, only half of these goods had been sold by Taballa Ltd, and Taballa Ltd had paid $600 to Amaroo Ltd. All remaining inventories were sold to external entities by 30 June 2024 and Taballa Ltd paid the outstanding amount to Amaroo Ltd on 5 May 2024. (b) On 1 January 2023, Taballa Ltd sold an item of plant to Amaroo Ltd for $10 000. Immediately before the sale, Taballa Ltd had the item of plant on its accounts for $ 12 000. Taballa Ltd depreciated items at 5% p. a. on the diminishing balance and Amaroo Ltd used the straight-line method over 10 years. (c) An inventories item with a cost of $4 000 was sold by Taballa Ltd to Amaroo Ltd for $3 600 on 1 January 2024. Amaroo Ltd intended to use this item as…