Chara han not entered into the Terms in the groupe Kumus, a resident peron Chanseprosedyens sy to plan to be wete foreign tax credit rate the residents ding in Required b. Amatiman Rural Bank commenced option on eary, ans, preparing not to 33* December each year. The Income statement for the younded December, 2n is een beton Income statement for the year ended 31 December 29 Profit before tax Additional Information Investment The business invested in two portfolios, a foreign investment with chap Lid, and Domestic investment with Blue Rene Limited. Fue Rose tidsscated in Baduro-Chana maman has 8% shares for GH 1,200.00 in Incharge lid and 28shares for GH 650.000 in Blue Rose Limited. During the year ended 31 December, 2019. in-charge Limited paid an amount of GHE 4000 after 5% tax to the bank while Blue Rose Lid pada amount of CH 42,500. The management realised that Blue Bosed is not profitable investment, so they sold the shares for CH 30000 in December, 2019, and acquired a new shares in idinador Lid costing CHE 723500 in the same month. The only amount included by the accountant before arriving at the profit beore tax was GHE 142,900 bring the dividends received from Pie Rose Led and lo-charge Depreciation Amafiman Rural Bank hard Depreciation become arriving at the above profit. The bank depreciated the awet on strast line method. The business acquired the following set on 1 January, 2018 Depreciate Rate Cost CHC Premises (Land element CH 401900) Computer servers The bank acquired trade mark valued at CH 59.900 with an economic useful life of years in the year 2018 The accountant pored the trade mark and Land in computation of the depreciation Research and development The banks conducted earch amounted to GHE 10,000. The research was carried out to acquire the computer werver. The whole GH* 10000 was added to cost in arriving at the profit. . Uncollectible dent and Refund Speche bad debt and General bed debt on las mounted to CH 12.000 and GH 25.000 aspectively. And the amounts were added to cont in arriving at the profit. Interest of GHE 1310 ved from per Rural Bank was retunded back to them on 1 December, 2019 because of on to refund Salary paid to fulf Page 5 of 6 In the year 2019, the business employed 6 fresh graduates out of the total work force of 750 in the bank. During the year ended 31 December, 2019, the business deducted the following expenditures from the business income. GHC Fresh Graduate Staffs 350,000 Other Staffs 750,000 SSNIT Contributions 400,000 Total 1,500,000 . Finance Lease The interest expense deducted before arriving at the above profit includes sum of GH 12,000 paid to Big Joe Plant Pool ltd under finance lease agreement. Big Joe Plant Pool ltd gave Amafiman Rural Bank an option of either buying a plant outright cash of GHC 45,492 or leasing it for 5 years. Under the lease terms, Amafiman Rural Bank will pay an annual rental of GH 12,000 at the beginning of each year for five years. The implicit interest rate of the lease is 10% and the expected useful life of the plant is 5 years. Amafiman Rural Bank is required to insure the plant and can renew the lease contract for an insignificant amount. Amafiman Rural Bank leased the plant on 1" January, 2018. The accountant of Amafiman Rural Bank did not charge any depreciation on the plant because he thinks Big Joe should rather charge the depreciation Required Compute the Chargeable Income and tax payable by Amafiman Rural Bank for 2019 year of assessment (9 marks) Provide notes to support your answer in (i) above (17 marks) (Total: 30 marks) Chara han not entered into the Terms in the groupe Kumus, a resident peron Chanseprosedyens sy to plan to be wete foreign tax credit rate the residents ding in Required b. Amatiman Rural Bank commenced option on eary, ans, preparing not to 33* December each year. The Income statement for the younded December, 2n is een beton Income statement for the year ended 31 December 29 Profit before tax Additional Information Investment The business invested in two portfolios, a foreign investment with chap Lid, and Domestic investment with Blue Rene Limited. Fue Rose tidsscated in Baduro-Chana maman has 8% shares for GH 1,200.00 in Incharge lid and 28shares for GH 650.000 in Blue Rose Limited. During the year ended 31 December, 2019. in-charge Limited paid an amount of GHE 4000 after 5% tax to the bank while Blue Rose Lid pada amount of CH 42,500. The management realised that Blue Bosed is not profitable investment, so they sold the shares for CH 30000 in December, 2019, and acquired a new shares in idinador Lid costing CHE 723500 in the same month. The only amount included by the accountant before arriving at the profit beore tax was GHE 142,900 bring the dividends received from Pie Rose Led and lo-charge Depreciation Amafiman Rural Bank hard Depreciation become arriving at the above profit. The bank depreciated the awet on strast line method. The business acquired the following set on 1 January, 2018 Depreciate Rate Cost CHC Premises (Land element CH 401900) Computer servers The bank acquired trade mark valued at CH 59.900 with an economic useful life of years in the year 2018 The accountant pored the trade mark and Land in computation of the depreciation Research and development The banks conducted earch amounted to GHE 10,000. The research was carried out to acquire the computer werver. The whole GH* 10000 was added to cost in arriving at the profit. . Uncollectible dent and Refund Speche bad debt and General bed debt on las mounted to CH 12.000 and GH 25.000 aspectively. And the amounts were added to cont in arriving at the profit. Interest of GHE 1310 ved from per Rural Bank was retunded back to them on 1 December, 2019 because of on to refund Salary paid to fulf Page 5 of 6 In the year 2019, the business employed 6 fresh graduates out of the total work force of 750 in the bank. During the year ended 31 December, 2019, the business deducted the following expenditures from the business income. GHC Fresh Graduate Staffs 350,000 Other Staffs 750,000 SSNIT Contributions 400,000 Total 1,500,000 . Finance Lease The interest expense deducted before arriving at the above profit includes sum of GH 12,000 paid to Big Joe Plant Pool ltd under finance lease agreement. Big Joe Plant Pool ltd gave Amafiman Rural Bank an option of either buying a plant outright cash of GHC 45,492 or leasing it for 5 years. Under the lease terms, Amafiman Rural Bank will pay an annual rental of GH 12,000 at the beginning of each year for five years. The implicit interest rate of the lease is 10% and the expected useful life of the plant is 5 years. Amafiman Rural Bank is required to insure the plant and can renew the lease contract for an insignificant amount. Amafiman Rural Bank leased the plant on 1" January, 2018. The accountant of Amafiman Rural Bank did not charge any depreciation on the plant because he thinks Big Joe should rather charge the depreciation Required Compute the Chargeable Income and tax payable by Amafiman Rural Bank for 2019 year of assessment (9 marks) Provide notes to support your answer in (i) above (17 marks) (Total: 30 marks)