QUESTION 4 a) Most economies world-wide have been ravaged by the impact of the Covid-19 pandemic. State and briefly explain in not more than two sentences four fiscal policy interventions the government should implement to stimulate the Ghanaian economy, (4 Marks) b) The following information is an extract of projected financial performance of Quarantine Limited a manufacturing company that intends to go into operation with a basis period from January to December. Management is contemplating operating in either Goaso (capital of the Alafo Region) or Kenyasi (capital of the Asutifi North District in the Ahafo Region) but the results are expected to be the same irrespective of the location. The following projected results from January to December Year I are worth analysing. Goaso (Regional Capital) Kenyasi (District Capital) GH GHC Sales 4,700,000 4,700,000 Cost of sales 2,650,000 2,650,000 Operating expenses 1,020,000 1,020,000 The following additional information is relevant: A building to be bought on 1 March Year I for GH500,000 has been granted full year's depreciation at the rate of 15%; factory plant to be acquired in April Year 1 for GH180,000 to be depreciated at a rate of 25% (full year's depreciation); these costs have been added to projected cost above Required: Compute the projected tax payable on the above and advise where management is likely to site the entity and why? (6 Marks) Total 10 Marks! QUESTION 4 a) Most economies world-wide have been ravaged by the impact of the Covid-19 pandemic. State and briefly explain in not more than two sentences four fiscal policy interventions the government should implement to stimulate the Ghanaian economy, (4 Marks) b) The following information is an extract of projected financial performance of Quarantine Limited a manufacturing company that intends to go into operation with a basis period from January to December. Management is contemplating operating in either Goaso (capital of the Alafo Region) or Kenyasi (capital of the Asutifi North District in the Ahafo Region) but the results are expected to be the same irrespective of the location. The following projected results from January to December Year I are worth analysing. Goaso (Regional Capital) Kenyasi (District Capital) GH GHC Sales 4,700,000 4,700,000 Cost of sales 2,650,000 2,650,000 Operating expenses 1,020,000 1,020,000 The following additional information is relevant: A building to be bought on 1 March Year I for GH500,000 has been granted full year's depreciation at the rate of 15%; factory plant to be acquired in April Year 1 for GH180,000 to be depreciated at a rate of 25% (full year's depreciation); these costs have been added to projected cost above Required: Compute the projected tax payable on the above and advise where management is likely to site the entity and why? (6 Marks) Total 10 Marks
