On 1 Jan 2022: Questions 6 to 10 (show your brief work for your answers below):...
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On 1 Jan 2022: Questions 6 to 10 (show your brief work for your answers below): Indium Co. Ltd was set up with $1,600,000 in shareholders' equity from its founders, all paid in cash. The firm bought a machine for $1,500,000 (all pad in cash) with straight- line deprecation of 5 years (disposal value at the end of the machine's useful life assumed to be $0) on 1 January 2022. The firm borrowed $200,000 at interest rate of 8% on 1 Jan 2022, all disbursed in cash. The loan is for five years and the principal of $200,000 is paid at the end of year 5. In 2022, the firm had recorded revenue of $3m. The amount of $800,000 of sales has not been collected in cash. raw materials bought amount to $1m. However, to generate the sales of $3m, $800,000 worth of raw materials was expensed. utilities and wages expenses for the year amount to $600,000, and they have all been paid in cash. the firm has paid $700,000 in cash to the suppliers for the raw materials. tax rate on taxable income is 20%. Taxes all paid in cash. a dividend of $200,000 was paid to the shareholders. On 1 Jan 2022: Questions 6 to 10 (show your brief work for your answers below): Indium Co. Ltd was set up with $1,600,000 in shareholders' equity from its founders, all paid in cash. The firm bought a machine for $1,500,000 (all pad in cash) with straight- line deprecation of 5 years (disposal value at the end of the machine's useful life assumed to be $0) on 1 January 2022. The firm borrowed $200,000 at interest rate of 8% on 1 Jan 2022, all disbursed in cash. The loan is for five years and the principal of $200,000 is paid at the end of year 5. In 2022, the firm had recorded revenue of $3m. The amount of $800,000 of sales has not been collected in cash. raw materials bought amount to $1m. However, to generate the sales of $3m, $800,000 worth of raw materials was expensed. utilities and wages expenses for the year amount to $600,000, and they have all been paid in cash. the firm has paid $700,000 in cash to the suppliers for the raw materials. tax rate on taxable income is 20%. Taxes all paid in cash. a dividend of $200,000 was paid to the shareholders.
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Answer 6 Calculate Net Income for 2022 Revenue 3000000 Cost of Goods Sold COGS 1000000 raw materials ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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