Q3 : Calculate the cost base of the disposed asset and the gain of the disposal.

A- . In 2019, a taxpayer sold a merchandise for 100,000 SR on credit, but he did not report that sales in his tax return. In 2020, it is proved that impossibility of collecting receivable accounts.

Required:

Is taxpayers bad debt deductible or not?

B - . In 2019, a taxpayer sold a merchandise for 100,000 SR on credit and he reported that sales in his tax return. In 2020, it is proved that impossibility of collecting receivable accounts.

Required:

Is taxpayers bad debt deductible or not?

C- . A taxpayer applied depreciation rates of 10% on his assets using straight-line method. While depreciation rate by tax law is 15%.

Required:

What is the effect of that transaction on the tax base?