I AM UPLOADING BOTH THE QUESTION AND ANSWER JUST TYPE IT DOWN IN EXCEL AND PROVIDE GOOGLE DRIVE LINK OR SCREENSHOT. PLEASE TYPE PROPERLY.
Thundergun Ltd is a construction company with an annual reporting period date of 31 December. Thundergun Ltol has a profit before tax of R1 875000 and R1 500000 for the reporting periods ended 31 December 2015 and 31 December 2016 respectively. Additional information: 1. On 31 December 2016 the balance on the deposits received in advance amounts to R62 500 (2015-R37 500) for constuction projects that have not yet commenced. In terms of SARS legislation, these amounts will be taxed in the year they are received. No deposits were received before 1 January 2015 2. Thundergun Lto replaced its old manufacturing plant on 1 January 2016 and put it into production immediately. The information about the plants are as follows: The old plant was sold for R1 000000 . 3. The following items were included in calculation of the profit before tax R25 000 (2015 - Rnil) of the legal fees of 2016 were tax deductible. 4. Assume a standard tax rate for normal company tax for all years as 28%. 5. The balance of the deferred tax account on 31 December 2014 only related to the manufacturing plant. 6. VAT and Dividend Tax may be ignored. REQUIRED: a) Calculate the deferred tax liability / (asset) of Thundergun Ltd on 31 December 2015 and 31 December 2016. Clearly indicated the make-up of the balance as well as the amount to be recognised in the statement of comprehensive income b) Calculate the normal tax payable of Thundergun Ltd for the reporting periods ended 31 December 2015 and 2016. Thundergun Ltd smmented [PZ1] ] In thia -ettien it ia imgatem that atadents t the dirsetien of the smanta cerrect. Therffers bracksta snd no Thundergun Ltd is a construction company with an annual reporting period date of 31 December. Thundergun Ltol has a profit before tax of R1 875000 and R1 500000 for the reporting periods ended 31 December 2015 and 31 December 2016 respectively. Additional information: 1. On 31 December 2016 the balance on the deposits received in advance amounts to R62 500 (2015-R37 500) for constuction projects that have not yet commenced. In terms of SARS legislation, these amounts will be taxed in the year they are received. No deposits were received before 1 January 2015 2. Thundergun Lto replaced its old manufacturing plant on 1 January 2016 and put it into production immediately. The information about the plants are as follows: The old plant was sold for R1 000000 . 3. The following items were included in calculation of the profit before tax R25 000 (2015 - Rnil) of the legal fees of 2016 were tax deductible. 4. Assume a standard tax rate for normal company tax for all years as 28%. 5. The balance of the deferred tax account on 31 December 2014 only related to the manufacturing plant. 6. VAT and Dividend Tax may be ignored. REQUIRED: a) Calculate the deferred tax liability / (asset) of Thundergun Ltd on 31 December 2015 and 31 December 2016. Clearly indicated the make-up of the balance as well as the amount to be recognised in the statement of comprehensive income b) Calculate the normal tax payable of Thundergun Ltd for the reporting periods ended 31 December 2015 and 2016. Thundergun Ltd smmented [PZ1] ] In thia -ettien it ia imgatem that atadents t the dirsetien of the smanta cerrect. Therffers bracksta snd no
