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Need answers of this question. EXEIVITTED INCOME, INTEREST ON LOAN, ALLOWABLE DEPRECIATION Mr. Rahman is a farmer whose only income is from agriculture. Compute taxable
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EXEIVITTED INCOME, INTEREST ON LOAN, ALLOWABLE DEPRECIATION Mr. Rahman is a farmer whose only income is from agriculture. Compute taxable income for Mr. Rahman for the current income year ended considering: sale of rice 150 maunds@Tk.710permaund; sale of potato 300 maunds @ Tk. 150 per maund; income from Borga Tk. 40,000 ; lease of agricultural land Tk. 300,000 . Expenses relating these incomes were: cost of seeds and fertilizer Tk. 36,500 ; labor charge Tk. 40,000; maintenance costs of agricultural equipment Tk. 4,000 ; union parisad tax Tk. 5,800; crop insurance premium Tk.8,200; depreciation on tractor@ 20% Tk. 14.000, Mr. Rahman has borrowed fund from Krisi Unnayon Bank Tk. 40.000@15% on 15h October of the income year. Allowable depreciation for tractor as per the 3re Schedule of the ITO, 1984 is at the rate of 15%. Cost of seeds and fertilizer includes Tk. 1,500 spent against Borga. Mr. Rahman maintains books of accounts properly. Notes: (1) Production costs: Cost of seeds and fertilizer Tk. 35,000+ Labor charge ik: 4 T , ,vom of agricultural equipment Tk. 4.000= Total 79.000. No production costs are allowed for share from borga. So. cost of seeds and fertilizer is allowable up to (36,5001.500) or 35.000. (2) Allowable depreciation =(14,0000.20). 12=4,250. (4) As agriculture is the only 0.15=10.500 (3) Interest on borrowed fund =(40,00015%)8.5+12=4,250. (4) As agriculure is EXEIVITTED INCOME, INTEREST ON LOAN, ALLOWABLE DEPRECIATION Mr. Rahman is a farmer whose only income is from agriculture. Compute taxable income for Mr. Rahman for the current income year ended considering: sale of rice 150 maunds@Tk.710permaund; sale of potato 300 maunds @ Tk. 150 per maund; income from Borga Tk. 40,000 ; lease of agricultural land Tk. 300,000 . Expenses relating these incomes were: cost of seeds and fertilizer Tk. 36,500 ; labor charge Tk. 40,000; maintenance costs of agricultural equipment Tk. 4,000 ; union parisad tax Tk. 5,800; crop insurance premium Tk.8,200; depreciation on tractor@ 20% Tk. 14.000, Mr. Rahman has borrowed fund from Krisi Unnayon Bank Tk. 40.000@15% on 15h October of the income year. Allowable depreciation for tractor as per the 3re Schedule of the ITO, 1984 is at the rate of 15%. Cost of seeds and fertilizer includes Tk. 1,500 spent against Borga. Mr. Rahman maintains books of accounts properly. Notes: (1) Production costs: Cost of seeds and fertilizer Tk. 35,000+ Labor charge ik: 4 T , ,vom of agricultural equipment Tk. 4.000= Total 79.000. No production costs are allowed for share from borga. So. cost of seeds and fertilizer is allowable up to (36,5001.500) or 35.000. (2) Allowable depreciation =(14,0000.20). 12=4,250. (4) As agriculture is the only 0.15=10.500 (3) Interest on borrowed fund =(40,00015%)8.5+12=4,250. (4) As agriculure isStep by Step Solution
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