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Question 3 ABC Pty Ltd . Is a small Australian insurance company operating in Adelaide. It is an Australian resident private company for tax purposes.
Question ABC Pty Ltd Is a small Australian insurance company operating in Adelaide. It is an Australian resident private company for tax purposes. The accounting profit and loss statement for the year ended June is as follows: Income $ Fees Less Operating Expenses $ Accounting fees Advertising Accounting Depreciation note Fringe benefits tax paid Gifts note Light, power and heating Provision for Long Service Leave note Provision for Doubtful Debts note Provision for Unreported Claims note Rent Repairs note Stationary Wages Net Profit Additional information The Tax Depreciation schedule based on Division ITAA shows depreciation for the year as $ The Gifts were as follows: Royal Melbourne Hospital $ Melbourne Football Club $ The long service leave paid in cash during the year was $ The bad debts written off during the year were $ The provision for unreported claims was based on an estimate of accidents that had occurred before the end of the financial year, but had not yet been reported to the company. The company anticipated making the payments of $ during the months of July and August in respect of these claims. The repairs of $ consisted of painting the company premises for $ and replacing the old rotting wooden office window frames with new steel window frames for $ The cost of replacing the old wooden office window frames with new wooden window frames would have been $ The new steel window frames had the advantage of not being subject to rotting. On the June the ABC Pty Ltd also received a dividend of $franked to from Halo Pty Ltd a resident public company. This dividend is not recorded in the Profit and Loss Statement. Halo Pty Ltd is not a small business entity for tax purposes. The accounting net profit of $ included $ of net exempt income. The company has an unabsorbed income loss of $ from the income year. The Company satisfies the continuity of ownership and continuity of business tests. REQUIRED: Calculate the Company's Tax Liability for the year ended June Figures can be rounded to the nearest dollar. You should briefly explain your treatment of every item in this question If you fail to explain your inclusion or exclusion of any item, you will lose marks. Use the following format in answering this question: Item: Bad debts Explanation: Normal risk in carrying on a business deduction s and s ITAA Amount: $ xxxx
Question
ABC Pty Ltd Is a small Australian insurance company operating in Adelaide. It is an Australian resident private company for tax purposes. The accounting profit and loss statement for the year ended June is as follows:
Income $
Fees
Less
Operating Expenses $
Accounting fees
Advertising
Accounting Depreciation note
Fringe benefits tax paid
Gifts note
Light, power and heating
Provision for Long Service Leave note
Provision for Doubtful Debts note
Provision for Unreported Claims note
Rent
Repairs note
Stationary
Wages
Net Profit
Additional information
The Tax Depreciation schedule based on Division ITAA shows depreciation for the year as $
The Gifts were as follows:
Royal Melbourne Hospital $
Melbourne Football Club $
The long service leave paid in cash during the year was $
The bad debts written off during the year were $
The provision for unreported claims was based on an estimate of accidents that had occurred before the end of the financial year, but had not yet been reported to the company. The company anticipated making the payments of $ during the months of July and August in respect of these claims.
The repairs of $ consisted of painting the company premises for $ and replacing the old rotting wooden office window frames with new steel window frames for $ The cost of replacing the old wooden office window frames with new wooden window frames would have been $ The new steel window frames had the advantage of not being subject to rotting.
On the June the ABC Pty Ltd also received a dividend of $franked to from Halo Pty Ltd a resident public company. This dividend is not recorded in the Profit and Loss Statement. Halo Pty Ltd is not a small business entity for tax purposes.
The accounting net profit of $ included $ of net exempt income.
The company has an unabsorbed income loss of $ from the income year. The Company satisfies the continuity of ownership and continuity of business tests.
REQUIRED:
Calculate the Company's Tax Liability for the year ended June
Figures can be rounded to the nearest dollar.
You should briefly explain your treatment of every item in this question
If you fail to explain your inclusion or exclusion of any item, you will lose marks.
Use the following format in answering this question:
Item: Bad debts
Explanation: Normal risk in carrying on a business deduction s and s ITAA
Amount: $ xxxx
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