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Income Sales 1,390,263 Fair value adjustment Rent received 142,090 Interest received 62,382 2.896,265 Expenses Cost of sales 3,011,805 Salaries and wages 1,960, 321 Administrative expenses

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Income Sales 1,390,263 Fair value adjustment Rent received 142,090 Interest received 62,382 2.896,265 Expenses Cost of sales 3,011,805 Salaries and wages 1,960, 321 Administrative expenses 874,139 Goodwill written off 200,000 impairment of investment 375,000 tous on sale of plant 39,897 Depreciation 489,729 Donations Amortisation of patent 58,027 Provision for future expenses 176,800 Management fees 350,000 8,164,244 Net profit for the year 732.521 The following additional information is provided: 1. The loss on sale of plant is calculated: Cost P528,113 Accumulated depreciation (208,216) 319,897 Fair value adjustment 120,000 Sales price (400,000 Loss on sale 39,897 Capital allowances amounting to P328, 424 had been claimed in respect of the sold plant as at 31 March 2013 2. Replacement plant was purchased for P822, 600. 3. Management fees are payable to a non-resident. Withholding tax of P26, 250 was paid during the year. 4. The company made the following tax payments during the year: Self-assessment tax P 150,000 withholding tax on interest received P6,738 Withholding tax on rent received P7,145 Required: (a) Calculate the taxable income. (15 marks) (b) Calculate the net tax payable by or refundable. (3 marks) Income Sales 1,390,263 Fair value adjustment Rent received 142,090 Interest received 62,382 2.896,265 Expenses Cost of sales 3,011,805 Salaries and wages 1,960, 321 Administrative expenses 874,139 Goodwill written off 200,000 impairment of investment 375,000 tous on sale of plant 39,897 Depreciation 489,729 Donations Amortisation of patent 58,027 Provision for future expenses 176,800 Management fees 350,000 8,164,244 Net profit for the year 732.521 The following additional information is provided: 1. The loss on sale of plant is calculated: Cost P528,113 Accumulated depreciation (208,216) 319,897 Fair value adjustment 120,000 Sales price (400,000 Loss on sale 39,897 Capital allowances amounting to P328, 424 had been claimed in respect of the sold plant as at 31 March 2013 2. Replacement plant was purchased for P822, 600. 3. Management fees are payable to a non-resident. Withholding tax of P26, 250 was paid during the year. 4. The company made the following tax payments during the year: Self-assessment tax P 150,000 withholding tax on interest received P6,738 Withholding tax on rent received P7,145 Required: (a) Calculate the taxable income. (15 marks) (b) Calculate the net tax payable by or refundable

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