1. Apple Companys information for the month of January 2021 is given below. The amounts are not included Value Added Tax (VAT). Assuming VAT rate is % 18.

January 1 No beginning merchandise inventory, beginning cash 290.000 TRY.

January 8 Purchased 90.000 TRY merchandise on account.

January 17 Sold merchandise for 80.000 TRY on account. Cost of the merchandise sold was 60,000 TRY.

January 24 Purchased 110.000 TRY merchandise inventory with cash.

January 29 Sold merchandise for 120.000 TRY with cash. Cost of the merchandise sold was 65,000 TRY.

Required:

Record VAT journal entries and prepare the T-Accounts (15 Points)

Close the VAT account at January 31 (5 points)

If necessary paid the amount at February 26 to the Tax Office. (5 points)

2. 2021 Year end results for Corporate Income Taxpayer Company B is as follows. The Company gave the declaration on 25 April 2022 and will pay tax on 30 April 2022.

Profit for 2020: 5.500.000 TRY

Non-deductible expenses: 400.000 TRY

Previous year losses: 100.000 TRY for 2014, 300.000 TRY for 2016

Domestic Participation Exemption: 350.000 TRY

French Permanent Establishment Income: 300.000 TRY (The income is transferred to Turkey)

Russian Construction Permanent Establishment Income 450.000 TRY (The income is not transferred to Turkey)

Donations to X Foundation that works for public interest: 55.000 TRY

The prepaid tax: 205.000 TRY

The withholding tax paid 330.000 TRY

Corporate income tax rate is %22.

Required: a) Calculate corporate income tax payable for 2020. (10 points)

b) Make the journal entries on 25 and 30 April 2021. (5 points)

3. VAT Deductible and VAT Received for Company C in a given tax period are as follows.

Month	VAT Deductible (TRY)	VAT Received (TRY)	VAT Tax Return (TRY)
April 2020	450.000	300.000
May 2020	300.000	100.000
June 2020	350.000	750.000

Required: a) Fill VAT tax return number on the table for each month. (5 points)

b) Close the VAT Accounts and make the journal entries at the end of April, May, June 2020. (5 points)

c) If it is necessary make journal entries for VAT payment to the tax offices on 26 May, 26 June, 26 July 2020. (5 points)

4. X Corp. is located in State A and also has income from its business in State B. Residence State A tax rate is 22%. Source State B tax rate is 27%. X Corp. has income of 20,000 USD in State A, and 13.000 USD in State B.

Required: Taking into account above information and using the ordinary tax credit method, calculate the corporate income tax paid in residence State A by X Corp. (10 points)

5. Mr. B plays national lottery each month. He won the biggest prize 2.000.000 TRY on 9 January 2021.

Note: The exclusion amount the gift tax and tax schedule for the year 2021 are in the Slides.

Required: Is the prize of Mr. B subject to gift tax? If so, calculate the tax base and the tax payable. Who is going to pay the tax? (10 points).

6. Mrs. E obtained dividends of a gross amount of 175.000 from a full taxpayer joint stock company (XYZ) in 2021. The obtained dividend has been subject to 15% tax stoppage made within the corporation, and so the stoppage amount is 262.500 TRY. On the date of collection and expenditure, buying rate for Euro announced by The Central Bank of Republic of Turkey is assumed as 10 TRY. Mr. A has also a flat in stanbul. The rental income on flat was 120.000 TRY in 2021.

She chooses lump-sum expense method for his rental income.

Use the income tax schedule for 2021 from the slides.

Required: Calculate Mrs. Es personal income tax liability for 2021. (15 Points)

7. Mr. C died 15.01.2021 in Slovenia. He has only one daughter who lives in Turkey. The daughter inherit 2.000.000 TRY land, 500.000 TRY car, 700.000 TRY gold, and 1.400.000 TRY bank deposits. She paid 350.000 TRY depth for his father.

Note: The exclusion amount the inheritance tax and tax schedule for the year 2021 are in the Slides.

Required: When the daughter will make declaration? Calculate tax base and taxable inheritance tax (10 Points?