Coursework: James is 35 years old and owns and runs a small business, which is a shop that sells computer hardware and software equipment. James has prepared financial statements for the tax year 2020, as per the below: Sales 170,000 Minus Cost of Sales -71,000 Gross Profits 99,000 Plus Savings received 10,000 Plus Dividends received 28,000 38,000 38,000 137,000 Minus Expenses: Personnel's salaries 30,000 1 Ofce rent 16,000 Utility bills 5,000 Purchase of air-conditions for the shop 10,000 Purchase of a van vehicle 15,000 2 Diesel expenses for van 3,000 Purchase of new furniture for the shop 8,000 Purchase of Vauxhall Astra car 20,000 3 Petrol expenses for Vauxhall Astra 4,000 Purchase of Toyota Yaris car 12,000 4 Petrol expenses for Toyota Yaris 2,000 Various expenses 30,000 5 150.000 -150.000 Accounting Losses -18.000 Notes to the accounting records of James' business: 1. Analysis of personnel's salaries Salary and social security contributions of 2 salesmen 20.000 Salary of Elizabeth (wife of James) 10.000 Total Payroll expenses 30.000 2. Purchase of van The van has emissions of 190 gr/km. 3. Purchase of Vauxhall Astra car The car has emissions of 168 gr/km. The UK tax authorities have ruled that 50% of the car's expenses are connected to James' private use of the car. Page 3 of 5 4. Purchase of Toyota Yaris car The car has emissions of 100 gr/km. The UK tax authorities have ruled that 70% of the car's expenses are connected to James' private use of the car. 5. Various expenses analysis: E Gifts to clients (200 USB sticks) 9.000 Donation to Conservative Party 3.000 Clients' entertainment expenses 7.000 Lawyer's fees for personal case of James 3.500 Subscription to magazine "National Geographic" 1.000 Accountant's fees for bookkeeping of James' business 2.500 Subscription to local motor racing club 2.000 James' annual subscription to a local gym 2.000 TOTAL: 30.000 Page 4 of 5