Question
1. Healing Accounts Pty Ltd is a medium-sized accounting firm in Perth, Western Australia. The company purchased a car on 1 January 2021 for $95,000.
1.
Healing Accounts Pty Ltd is a medium-sized accounting firm in Perth, Western Australia. The company purchased a car on 1 January 2021 for $95,000. What is the companys depreciation deduction in relation to the car for the year ended 30 June 2021 under the diminishing value and prime cost methods respectively? The effective life of cars is 8 years.
|
| a. | $7,089 and $3,544 |
|
| b. | $7,392 and $3,696 |
|
| c. | $28,590 and $14,295 |
|
| d. | $11,777 and $5,888 |
2.
How many categories of fringe benefits are contained in the Fringe Benefit Tax AssessmentAct 1986 (Cth)?
|
| a. | 13 |
|
| b. | 16 |
|
| c. | 14 |
|
| d. | 2 |
3.
On 1 July 2020, a taxpayer that is not a small business entity acquired a new depreciating asset at a cost of $3,000,000. The taxpayer elects to use self-assessment to determine the effective life of the asset. The life of the asset is six years, with a residual value of $100,000. As the taxpayer wishes to maximise its deductions for the 20202021 tax year, it has chosen to use the diminishing value method in claiming a deduction for the decline in value of the asset.
What is the decline in value for the year ended 30 June 2021 (ignoring the impact of any leap years)?
|
| a. | $966,667 |
|
| b. | $500,000 |
|
| c. | $483,333 |
|
| d. | $1,000,000 |
4.
You are provided with the following information on the accounts receivable of Havelock Limited for the year ended 30 June 2021.
What is the amount included in the taxable income for Havelock Limited based on the accrual and cash methods of deriving income?
Opening debtors (1/07/2020) $300,000
Cash received $600,000
Closing debtors $250,000
|
| a. | Accrual basis: $250,000 Cash basis: $600,000 |
|
| b. | Accrual basis: $300,000 Cash basis: $600,000 |
|
| c. | Accrual basis: $650,000 Cash basis: $600,000 |
|
| d. | Accrual basis: $550,000 Cash basis: $600,000 |
5.
Rajans employer, a shoemaker, takes all of its employees out to dinner whenever it is an employees birthday. The employer spent $3,000 on birthday dinners last year. What is the taxable value (if any) of the fringe benefit provided? (Assume that Rajans employer does not use the 12-week register method for meal entertainment fringe benefits.)
|
| a. | Nil |
|
| b. | $1,500 |
|
| c. | $3,000 |
|
| d. | $1,000 |
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Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
10th Edition
B010IKDQZM
