sorry, i do not know why the pictures i upload is invisble, on my phone they are visible. how about you search Berry Ltd (BEL) carried on trading business in Hong Kong. Its provisional income statement for the year ended 31 March 2019 shows a net profit before taxation of $3,000,000, inter alia, after crediting the following income and charging the following expenses:
in the expert q area, once someone asked the same question as me. But I guess the answer given is wrong, so i reask
so after you read there, you can answer here
Expert Q&A Done provisional income Statement for the year ended 31 March 2019 shows a proberen of $3,000,000 creding the Sales to Hong Kong Profit on sale of product 3 4 Product research expense Depreciation Bank Charge Repairs pense Bad debts 5 16.00 25,000 O LML pudied the BL The des Box B order .com Interest on L ed deposits are in the Head Office of Hang Seng Bank Hong Kong. The deposit has been used to a bank loan n ow Interest from ever using debt Total per accounts 900.000 During the year 2000, BCL bought the proprietary interest a registered product design for use by soporte produce BELS products at a price of $1 million. During the year 2011 BEL sold the proprietary of the product designatief dece made a proto wa 201920 at a price of $2 million, which was not rected in the above comestament. The trademark has a protection period of years s ing from 2015 4 The product research expens included $150 000 for now c on ordinary ting 20.000 Interest on bank loan secured by a "The bank loan was used to buy trading stock The repair expense of $100.000 was fo t os year. The expenses for the purpose to put machine back to operabile condition for staining the meantime Write-off of staan" 15% interest and principal Provision-5% on total trade to balance 1000 The loon was provided to the stats bank account in Hong 8 Depreciation allowance agreed by the land Revenue Department for the year 200.000 Cute by for you Sales through Hong Kong 30.000.000 Sales through overseas 1 5 Expert Q&A .000.000 DOO Done Expending Product research expense 4 Bank charges and interest 1 tamine Our onden for forward the ni sails B. The BLo co 300,000 interest on Authed deposits placed with the Head Office of sengak Hong Kong. The deposit has been used to secure a bank loan Interest from yorguling debt 900.000 1200.000 During the year 2000, BEL bogh the proprietary interest a registered product design for use by suppliers to produce BEL's products at a price of $1 million. During the year 2018 , BEL sold the proprietary interest of the product design at a price of $13 ond hence made proto $200 000. Also bought a registered trademark during the in the above income statement. The trademark protection period of years starting from 2017 4 The product research experts included 5150000 for new researchegment Barcher on ordinary trading 20.000 140.000 Interest on hankan secured by a Gepost with Hang Seng Bank "The bar loon was used to buy trading stock The repair expense of $100.000 was fo resta year. The expens for the purpose to put the machine back to operable condition for long the relevant license Writ-off of a stat loan interest and principal Bad debt recovered trade when the on tottade den 000 - on specified trade debtors 53.000 Toto 000 Then we provided to the stars bank account in Hong Depression lowered the end Department for the 200 000 Round a Cake the well wow Sales through Solles of the design bukan I 11:34 1 18 che.pdf Berry Case Herry L) carried o trading bi g lement for the yeded 31 March 2019 sh $3.000.000 er alia, terceding the following kong s i e below and charging the following Saleh Sales og hop have Preket design Php Bank charges and interest REL howed ads from Hong Kong pi Comen. Over 100 awesolicited pw ede BEL in BEL formal s ode BEL The the Inico AUD placed with the Head Office The deposits been to webu Total per e During the year 2009. BEL how the p art of a product des by its supplier to produce red Si ni During the 2018, BE dhe p ara product design at a price od $1.3 million and hence made a p od ALSEL b e w uring the year 200920 trademark has a pr o fesing 01819 The product cach p icaded $150.000 ch 20 Bank charges c rying was Incro w d by a deposit with Hang Seng Banke Total per "The bank wid to buy ting sock The repairs of 100, p ing machine which was ang The purpose e puthe machine back t during the h e The ice for the + The scaded e Interest on hank with Hang Song Bank ( Tul d by a deposit 2 ) ad The repair expense of S h packing machine which was aquid during the year. The expenses the purpose to put the machine back to be condition for the W w o tr - and principal a ditional in the ye calde de Pre The low provided to the bank Hong Kong Depreciat e d by the Revenue Department for the Cakulate the profes payable by BEL for the o n e b) Explain your p a t he ingiems (1) Sales through ov e r 5.000.000 Incest frem frum burk depo in mare (3) Sales proceeds of the registered product de 100.000 14) Reddi t . c ) (5) Interna l 140,000 (6) off of $20,000 mark) (1) tap e of the second-hand packing machine 11:45 1 18 che.pdf 1/3 Berry Case By R a id on trading business in Hong Kong Ispovi statement for the year anded 31 March 2019 shows a profit before $3,000,000 inter aliate crediting the following income and changing the ncome of wing Sales through Hong Kong shops Saleshores 00000 5000.000 1 200 000 Pratite sale of product design Product can expense Bank charges and interest Explory Notes 1 BEL purchased pods from the pland sollte customers. Over 100 customers for BEL The pants would receive orders for BEL is overseas and forward theme BELfor m ation Interest on AUD sed deposits placed with the Head Office of Seng Hank k ees The deposit has been used to secure a bankom see (5) below) Interest from Tycar qualifying debt instrument Total per L2 During the year 2009. BEL bug the poi n t of product design for use by its suppliers to produce BEL's products price of sl million During the yew 2018/19,BEL the proprietary interest of the product designat a price of $1.3 million and hence made a profit of Als BEL hehta registered trademark during the year 201920 aprice 52 million, which was reflected in the show income The trademark has a protection period of 4 years starting from 2018/19 4 The product research expense included $150,000 for now escarch 20,000 Bank charges on ordinary trading transactions Interest on bunk loan secured by a deposit with Hang 2/3 e product research expense included $150,000 for escarch 20,000 100.000 Bank charges on ordinary trading transactions Interest bank word by a deposit with Hang Seong Bank se note above) Total per accounts "The banks was to buy trading stock n f The repairs expense of S1000 was for in repairs o packing machine which was acquired during the year. The expen the purpose to put the machine back to per le code for relevant license from the government or the Write for all an d 95% principal) Baddebes recovered trade debes written in the year 2018 19) Provision S ontal trade debes balance on specified trade de Total per a The loan was provided to the walls bank in Hong Kong 8 Depreciation allowance year was $200,000 red by the Revenue Department for the Required (a) Calculate the profits tas payable by BEL for the year of 18 19 b) Explain your profits tax treatments for the following items (1) Sales throughoucas agents 55,000,000 marks) (2) Interest from fixed fem bank deposit interest 300.000 marks) (3) Sales proceeds of the registered product design 51,300,000 marko (4) Registered trademark acquisition cost $2.000.000 marks) (5) Interest on uklowe $140,000 (3 mars (6) Write-off of walls 530.000 mars (7) Initial repairs cape of the second-hand packing machine 100,000 3 marks 2 EES Berry Case Berry Ltd ("BEL") carried on trading business in Hong Kong. Its provisional income statement for the year ended 31 March 2019 shows a net profit before taxation of $3,000,000, inter alia, after crediting the following income and charging the following expenses: Note Incomes Se Sales through Hong Kong shops 30,000,000 + Sales through overseas agents 5,000,000 Investment income 1,200,000 Profit on sale of product design- 300,000+ 12 Expenditure Product research expense Depreciation Bank charges and interest Repairs expense Bad debts- 500,000 300,000 160,000 100,000 75,000 Explanatory Notes BEL purchased goods from Hong Kong suppliers and sold to overseas customers. Over 100 overseas agents solicited customers for BEL. The agents would receive orders for BEL in overseas and forward the same to BO 12 16 18 20 22 2528 Explanatory Notes BEL purchased goods from Hong Kong suppliers and sold to overseas customers. Over 100 overseas agents solicited customers for BEL. The agents would receive orders for BEL in overseas and forward the same to BEL for final confirmation. $ 300,000 Interest on AUD fixed deposits placed with the Head Office of Hang Seng Bank, Hong Kong, The deposit has been used to secure a bank loan (see note (5) below) Interest from 7-year qualifying debt instrumente Total per accounts: 900,000 1.200.000 During the year 2009. BEL bought the proprietary interest of a registered product design for use by its suppliers to produce BEL's products at a price of $1 million. During the year 2018/19. BEL sold the proprietary interest of the product design at a price of $1.3 million and hence made a profit of $300,000 Also BEL bought a registered trademark during the year 2019/20 at a price on S2 million, which was not reflected in the above income statement. The trademark has a protection period of 4 years starting from 2018 19 2 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 402 4 The product research expense included $150,000 for new research equipment. Se 20,000 140,000 Bank charges on ordinary trading transactions Interest on bank loan* secured by a deposit with Hang Seng Bank (see note 2 above) Total per accounts *The bank loan was used to buy trading stock 160.000 6 The repairs expense of $100,000 was for initial repairs to a second-hand packing machine which was acquired during the year. The expense was for the purpose to put the machine back to operable condition for obtaining the relevant license from the govem ment. Write-off of a staff loan* (5% interest and 95% principai) Bad debts recovered (trade debts written off in the year 2018/19) Provision - 5 % on total trade debtors balance - on specified trade debtors Total per accounts S. 20,000 (8,000) 10,000 53,000 75.000 JA ASEEE hake 1 2 3 4 BO 68101112 221231206233KOR Write-off of a staff loan* (5% interest and 95% principal) Bad debts recovered (trade debts written off in the year 2018/19) Provision - 5% on total trade debtors' balance - on specified trade debtors Total per accounts The loan was provided to the staff's bank account in Hong Kong 20,000 (8,000)- 10,000 53,000 75.000 Depreciation allowance agreed by the Inland Revenue Department for the year was $200,000 Required *(a) Calculate the profits tax payable by BEL for the year of assessment 2018/19. ignore provisional tax (11 marks) . (6) Explain your profits tax treatments for the following items (1) Sales through overseas agents $5,000,000 (3 marks) (2) Interest from fixed term bank deposit interest $300,000 (3 marks) (3) Sales proceeds of the registered product design $1,300,000 (2 marks) (4) Registered trademark acquisition cost $2,000,000 (2 marks (5) Interest on bank loan $140.000 (3 marks) 214 8 10 12 14 16 20 22 24 26 28 30 32 30 The loan was provided to the staff's bank account in Hong Kong. 0 Depreciation allowance agreed by the Inland Revenue Department for the year was $200,000 Required - (a) Calculate the profits tax payable by BEL for the year of assessment 2018/19, ignore provisional tax- (11 marks) . (b) Explain your profits tax treatments for the following items ! (1) Sales through overseas agents $5,000,000 (3 marks) (2) Interest from fixed term bank deposit interest $300,000 (3 marks) (3) Sales proceeds of the registered product design S1,300,000 (2 marks). (4) Registered trademark acquisition cost $2,000,000 (2 marks) (5) Interest on bank loan $140,000 (3 marks) (6) Write-off of staff loan $20,000 (3 marks) () Initial repairs expense of the second-hand packing machine $100,000 (3 marks) (sub-total 19 marks) Expert Q&A Done provisional income Statement for the year ended 31 March 2019 shows a proberen of $3,000,000 creding the Sales to Hong Kong Profit on sale of product 3 4 Product research expense Depreciation Bank Charge Repairs pense Bad debts 5 16.00 25,000 O LML pudied the BL The des Box B order .com Interest on L ed deposits are in the Head Office of Hang Seng Bank Hong Kong. The deposit has been used to a bank loan n ow Interest from ever using debt Total per accounts 900.000 During the year 2000, BCL bought the proprietary interest a registered product design for use by soporte produce BELS products at a price of $1 million. During the year 2011 BEL sold the proprietary of the product designatief dece made a proto wa 201920 at a price of $2 million, which was not rected in the above comestament. The trademark has a protection period of years s ing from 2015 4 The product research expens included $150 000 for now c on ordinary ting 20.000 Interest on bank loan secured by a "The bank loan was used to buy trading stock The repair expense of $100.000 was fo t os year. The expenses for the purpose to put machine back to operabile condition for staining the meantime Write-off of staan" 15% interest and principal Provision-5% on total trade to balance 1000 The loon was provided to the stats bank account in Hong 8 Depreciation allowance agreed by the land Revenue Department for the year 200.000 Cute by for you Sales through Hong Kong 30.000.000 Sales through overseas 1 5 Expert Q&A .000.000 DOO Done Expending Product research expense 4 Bank charges and interest 1 tamine Our onden for forward the ni sails B. The BLo co 300,000 interest on Authed deposits placed with the Head Office of sengak Hong Kong. The deposit has been used to secure a bank loan Interest from yorguling debt 900.000 1200.000 During the year 2000, BEL bogh the proprietary interest a registered product design for use by suppliers to produce BEL's products at a price of $1 million. During the year 2018 , BEL sold the proprietary interest of the product design at a price of $13 ond hence made proto $200 000. Also bought a registered trademark during the in the above income statement. The trademark protection period of years starting from 2017 4 The product research experts included 5150000 for new researchegment Barcher on ordinary trading 20.000 140.000 Interest on hankan secured by a Gepost with Hang Seng Bank "The bar loon was used to buy trading stock The repair expense of $100.000 was fo resta year. The expens for the purpose to put the machine back to operable condition for long the relevant license Writ-off of a stat loan interest and principal Bad debt recovered trade when the on tottade den 000 - on specified trade debtors 53.000 Toto 000 Then we provided to the stars bank account in Hong Depression lowered the end Department for the 200 000 Round a Cake the well wow Sales through Solles of the design bukan I 11:34 1 18 che.pdf Berry Case Herry L) carried o trading bi g lement for the yeded 31 March 2019 sh $3.000.000 er alia, terceding the following kong s i e below and charging the following Saleh Sales og hop have Preket design Php Bank charges and interest REL howed ads from Hong Kong pi Comen. Over 100 awesolicited pw ede BEL in BEL formal s ode BEL The the Inico AUD placed with the Head Office The deposits been to webu Total per e During the year 2009. BEL how the p art of a product des by its supplier to produce red Si ni During the 2018, BE dhe p ara product design at a price od $1.3 million and hence made a p od ALSEL b e w uring the year 200920 trademark has a pr o fesing 01819 The product cach p icaded $150.000 ch 20 Bank charges c rying was Incro w d by a deposit with Hang Seng Banke Total per "The bank wid to buy ting sock The repairs of 100, p ing machine which was ang The purpose e puthe machine back t during the h e The ice for the + The scaded e Interest on hank with Hang Song Bank ( Tul d by a deposit 2 ) ad The repair expense of S h packing machine which was aquid during the year. The expenses the purpose to put the machine back to be condition for the W w o tr - and principal a ditional in the ye calde de Pre The low provided to the bank Hong Kong Depreciat e d by the Revenue Department for the Cakulate the profes payable by BEL for the o n e b) Explain your p a t he ingiems (1) Sales through ov e r 5.000.000 Incest frem frum burk depo in mare (3) Sales proceeds of the registered product de 100.000 14) Reddi t . c ) (5) Interna l 140,000 (6) off of $20,000 mark) (1) tap e of the second-hand packing machine 11:45 1 18 che.pdf 1/3 Berry Case By R a id on trading business in Hong Kong Ispovi statement for the year anded 31 March 2019 shows a profit before $3,000,000 inter aliate crediting the following income and changing the ncome of wing Sales through Hong Kong shops Saleshores 00000 5000.000 1 200 000 Pratite sale of product design Product can expense Bank charges and interest Explory Notes 1 BEL purchased pods from the pland sollte customers. Over 100 customers for BEL The pants would receive orders for BEL is overseas and forward theme BELfor m ation Interest on AUD sed deposits placed with the Head Office of Seng Hank k ees The deposit has been used to secure a bankom see (5) below) Interest from Tycar qualifying debt instrument Total per L2 During the year 2009. BEL bug the poi n t of product design for use by its suppliers to produce BEL's products price of sl million During the yew 2018/19,BEL the proprietary interest of the product designat a price of $1.3 million and hence made a profit of Als BEL hehta registered trademark during the year 201920 aprice 52 million, which was reflected in the show income The trademark has a protection period of 4 years starting from 2018/19 4 The product research expense included $150,000 for now escarch 20,000 Bank charges on ordinary trading transactions Interest on bunk loan secured by a deposit with Hang 2/3 e product research expense included $150,000 for escarch 20,000 100.000 Bank charges on ordinary trading transactions Interest bank word by a deposit with Hang Seong Bank se note above) Total per accounts "The banks was to buy trading stock n f The repairs expense of S1000 was for in repairs o packing machine which was acquired during the year. The expen the purpose to put the machine back to per le code for relevant license from the government or the Write for all an d 95% principal) Baddebes recovered trade debes written in the year 2018 19) Provision S ontal trade debes balance on specified trade de Total per a The loan was provided to the walls bank in Hong Kong 8 Depreciation allowance year was $200,000 red by the Revenue Department for the Required (a) Calculate the profits tas payable by BEL for the year of 18 19 b) Explain your profits tax treatments for the following items (1) Sales throughoucas agents 55,000,000 marks) (2) Interest from fixed fem bank deposit interest 300.000 marks) (3) Sales proceeds of the registered product design 51,300,000 marko (4) Registered trademark acquisition cost $2.000.000 marks) (5) Interest on uklowe $140,000 (3 mars (6) Write-off of walls 530.000 mars (7) Initial repairs cape of the second-hand packing machine 100,000 3 marks 2 EES Berry Case Berry Ltd ("BEL") carried on trading business in Hong Kong. Its provisional income statement for the year ended 31 March 2019 shows a net profit before taxation of $3,000,000, inter alia, after crediting the following income and charging the following expenses: Note Incomes Se Sales through Hong Kong shops 30,000,000 + Sales through overseas agents 5,000,000 Investment income 1,200,000 Profit on sale of product design- 300,000+ 12 Expenditure Product research expense Depreciation Bank charges and interest Repairs expense Bad debts- 500,000 300,000 160,000 100,000 75,000 Explanatory Notes BEL purchased goods from Hong Kong suppliers and sold to overseas customers. Over 100 overseas agents solicited customers for BEL. The agents would receive orders for BEL in overseas and forward the same to BO 12 16 18 20 22 2528 Explanatory Notes BEL purchased goods from Hong Kong suppliers and sold to overseas customers. Over 100 overseas agents solicited customers for BEL. The agents would receive orders for BEL in overseas and forward the same to BEL for final confirmation. $ 300,000 Interest on AUD fixed deposits placed with the Head Office of Hang Seng Bank, Hong Kong, The deposit has been used to secure a bank loan (see note (5) below) Interest from 7-year qualifying debt instrumente Total per accounts: 900,000 1.200.000 During the year 2009. BEL bought the proprietary interest of a registered product design for use by its suppliers to produce BEL's products at a price of $1 million. During the year 2018/19. BEL sold the proprietary interest of the product design at a price of $1.3 million and hence made a profit of $300,000 Also BEL bought a registered trademark during the year 2019/20 at a price on S2 million, which was not reflected in the above income statement. The trademark has a protection period of 4 years starting from 2018 19 2 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 402 4 The product research expense included $150,000 for new research equipment. Se 20,000 140,000 Bank charges on ordinary trading transactions Interest on bank loan* secured by a deposit with Hang Seng Bank (see note 2 above) Total per accounts *The bank loan was used to buy trading stock 160.000 6 The repairs expense of $100,000 was for initial repairs to a second-hand packing machine which was acquired during the year. The expense was for the purpose to put the machine back to operable condition for obtaining the relevant license from the govem ment. Write-off of a staff loan* (5% interest and 95% principai) Bad debts recovered (trade debts written off in the year 2018/19) Provision - 5 % on total trade debtors balance - on specified trade debtors Total per accounts S. 20,000 (8,000) 10,000 53,000 75.000 JA ASEEE hake 1 2 3 4 BO 68101112 221231206233KOR Write-off of a staff loan* (5% interest and 95% principal) Bad debts recovered (trade debts written off in the year 2018/19) Provision - 5% on total trade debtors' balance - on specified trade debtors Total per accounts The loan was provided to the staff's bank account in Hong Kong 20,000 (8,000)- 10,000 53,000 75.000 Depreciation allowance agreed by the Inland Revenue Department for the year was $200,000 Required *(a) Calculate the profits tax payable by BEL for the year of assessment 2018/19. ignore provisional tax (11 marks) . (6) Explain your profits tax treatments for the following items (1) Sales through overseas agents $5,000,000 (3 marks) (2) Interest from fixed term bank deposit interest $300,000 (3 marks) (3) Sales proceeds of the registered product design $1,300,000 (2 marks) (4) Registered trademark acquisition cost $2,000,000 (2 marks (5) Interest on bank loan $140.000 (3 marks) 214 8 10 12 14 16 20 22 24 26 28 30 32 30 The loan was provided to the staff's bank account in Hong Kong. 0 Depreciation allowance agreed by the Inland Revenue Department for the year was $200,000 Required - (a) Calculate the profits tax payable by BEL for the year of assessment 2018/19, ignore provisional tax- (11 marks) . (b) Explain your profits tax treatments for the following items ! (1) Sales through overseas agents $5,000,000 (3 marks) (2) Interest from fixed term bank deposit interest $300,000 (3 marks) (3) Sales proceeds of the registered product design S1,300,000 (2 marks). (4) Registered trademark acquisition cost $2,000,000 (2 marks) (5) Interest on bank loan $140,000 (3 marks) (6) Write-off of staff loan $20,000 (3 marks) () Initial repairs expense of the second-hand packing machine $100,000 (3 marks) (sub-total 19 marks)
