Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(a) Corporation Tax Bingo Ltd, is a UK resident manufacturing company. It had always made up accounts to 30 September but decided to change the

image text in transcribed
(a) Corporation Tax Bingo Ltd, is a UK resident manufacturing company. It had always made up accounts to 30 September but decided to change the year-end from September to December. The company's results for the long period from 1 October 2020 to 31 December 2021 are a profit of 1,800,000 including the following items: Notes: 1 Accrued interest brought forward on 30 September 2020 was 400 and the interest accrued on 31 December was 1,900. Assume interest accrued evenly throughout the period. 2 The gift aid donations were paid on 31 December 2021. 3 The depreciation is charged at 2,000 per month. 4 None of the dividends received are intra-group dividends. The company received 50,000 on 31 December 2020 and 50,000 on 31 December 2021. 5 The gain on disposal relates to the disposal of a 1% shareholding for 84,000 on 1 November 2021, which had originally cost 50,000 on 1 October 2018. 6 Capital allowances have been calculated as 45,000 for the year ended 30 September 2021 and 5,000 for the 3 months to 31 December 2021. These have not yet been accounted for in the above company results and notes 1-5. Bingo Ltd has never been part of a group and has not been a large company in a previous year. Requirements Calculate Bingo Ltd's tax liability for the period to 31 December 2021 and to state when any nayment is payable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditor Going Concern Reporting A Review Of Global Research And Future Research Opportunities

Authors: Marshall A. Geiger, Anna Gold, Philip Wallage

1st Edition

0367649489, 978-0367649487

More Books

Students also viewed these Accounting questions