Question
QUESTION Doddy Pry Ltd is a private company which was incorporated in 2001 and operated a coffee shop. The company has following results in past
QUESTION
Doddy Pry Ltd is a private company which was incorporated in 2001 and operated a coffee shop. The company has following results in past 4 years.
Tax year Taxable Income (loss)
2018/19. $ (47,000)
2019/20 $ (65,000)
2020/21 $ (35,000)
2021/22 $ (90,000)
Note: the above figures comprise only assessable income and deductions excluding losses of previous years. On 29 September 2019, 70% of the company's shares changed ownership.
On 21 March 2021, the company leased adjoining premises and opened a retail outlet selling firewood.
There is also a $3500 bad debt carried from the 2020/21 year
Doddy Pty Ltd also received $4000 exempt subsidy payment in the 2021/22 income year
Required
a) Utilising ALL tests determine whether Doddy Pty Ltd can utilize any of its tax losses against its 2021/22 taxable income.
b) Determine whether a deduction for the bad debt is available
c) Calculate Doddy's taxable income for 2021/22.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started