Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ACT B414F Taxation I+ Group Assignment (Summer 2019 Semester)~ Due date: 22nd July 2019- ANSWER ALL QUESTIONS+ Question 1 (50 marks)+ ABC Ltd is a

image text in transcribedimage text in transcribed

image text in transcribedimage text in transcribedimage text in transcribed
ACT B414F Taxation I+ Group Assignment (Summer 2019 Semester)~ Due date: 22nd July 2019- ANSWER ALL QUESTIONS+ Question 1 (50 marks)+ ABC Ltd is a computing consulting company with its accounting year ended 31 December. The profit before tax for year ended 31 December 2018 was $5450,000 after including the following items in its financial statements:+ Income:-+ +7 Compensation for early termination of a business contract by a customer+ * + 135,000 Share of profits from an associated company+ 380,000. Exchange gain from daily business related payable balance. 18,500+ Interest income from loans advanced to employees in HK+ 7,500+ Interest income from unpledged deposit placed with a local bank+ 2,400+ Interest income from long outstanding business related receivable balance due from overseas customers+ 8,600+ General bad debt provision written back+ 18,400+ Deposit forfeited by customers due to cancellation of service engagement+* 120,000. Expenditure:-+ Interest expense on overdue account payable to an unrelated overseas hardware supplier regarding the purchase of a computer system in prior year+ 3,600+ Interest expense on a bank loan from HSBC guaranteed by ABC Ltd s director personally (the loan was exclusively used for ABC Ltd - s daily business activities)+ 85,000+ Interest expense on an unsecured bank loan from Standard Chartered Bank + * 7 (the loan was exclusively used for the acquisition of certain listed shares for long term investment purposes )+ 78,000+Special contribution to ABC Lid s recognised occupational retirement+ scheme covering previous investment loss+ 165,000+ Annual contribution to ABC Ltd _ s recognised occupational retirement scheme (17% of each employee ~ s annual remunerations)+ 690,200+ Refurbishment expense for a residential property currently used by ABC Lid _ s director as quarters+ 300,000+ Refurbishment expense for a commercial property currently used by ABC Ltd as office premises+ 750,000+ Tax payment (salaries tax of ABC Lid

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

Fundamental Managerial Accounting Concepts

Authors: Thomas Edmonds

6th Edition

78110890, 978-0078110894

More Books

Students also viewed these Accounting questions

Question

2. How do I perform this role?

Answered: 1 week ago