Question oneAbani Limited acquired a machinery on 1/1/2020 for K200,000. The company depreciates the machinery at 25% per annum on cost. The company`s tax rate is 35% and that the year end is 31/12.The company is entitled to the following capital allowances:Year K2020 100,0002021 100 0002022 02023 0The company also had the following profits before tax but after depreciation as follows:Year K2020 125,0002021 140,0002022 175.0002023 192,000You are required to prepare the profit and Loss account extracts for all the yearsa) Ignore Deferred tax b) Include deferred tax c) Statement of Financial position (extracts) for the years 2020 to 2023

Happy Mart Sdn Bhd acquired an equipment in Year 2016 for RM100,000 and depreciates it on a straight-line basis over its expected useful life of five years. The equipment has no residual value. For tax purposes, the equipment is depreciated at 25% per annum on a straight-line basis. Tax losses may be carried back against taxable profit of the previous five years. In year 2015, the entity's taxable profit was RM25,000. The tax rate is 20%. Required:- Assuming nil profits/losses after depreciation in years 2016 to 2020, show the current and deferred tax impact in years 2016 to 2020 of the acquisition of the equipment. In this question the proformas are given to you to help you to setting out your answer. Please use a separate sheet for your workings. Year Taxable income Depreciation for tax purposes Taxable profit (tax loss) Current tax expense (income) 2016 2017 2018 2019 2020 Year |Carrying amount Tax base Taxable temporary difference 2016 2017 2018 2019 2020 Opening deferred tax…

Happy Mart Sdn Bhd acquired an equipment in Year 2016 for RM100,000 and depreciates it on a straight-line basis over its expected useful life of five years. The equipment has no residual value. For tax purposes, the equipment is depreciated at 25% per annum on a straight-line basis. Tax losses may be carried back against taxable profit of the previous five years. In year 2015, the entity's taxable profit was RM25,000. The tax rate is 20%. Required:- Assuming nil profits/losses after depreciation in years 2016 to 2020, show the current and deferred tax impact in years 2016 to 2020 of the acquisition of the equipment. In this question the proformas are given to you to help you to setting out your answer. Please use a separate sheet for your workings. Year Taxable income Depreciation for tax purposes Taxable profit (tax loss) Current tax expense (income) 2016 2017 2018 2019 2020 Year 2016 2017 2018 2019 2020 Carrying amount Таx base Taxable temporary difference Opening defered tax…

The tax return of Okinawa Company indicates taxable profit of P15,000,000 on which a tax liability of P5,250,000 has been recognized. Following is a list of items that may be required to determine accounting profit from the amount of taxable profit: Accelerated depreciation for income tax purposes was P2,000,000 and straight-line financial depreciation is P1,500,000 Insurance premium of P100,000 on the life of an officer with Okinawa as beneficiary was not included as a deduction in the tax return Interest on treasury bills was not included in the tax return. During the year, Okinawa received P2,500,000 on these investments. What was Okinawa’s accounting profit?

Happy Mart Sdn Bhd acquired an equipment in Year 2016 for RM100,000 anddepreciates it on a straight-line basis over its expected useful life of five years. Theequipment has no residual value. For tax purposes, the equipment is depreciated at25% per annum on a straight-line basis. Tax losses may be carried back againsttaxable profit of the previous five years. In year 2015, the entity's taxable profit wasRM25,000. The tax rate is 20%.

SINCO Ltd. purchased a piece of equipment in the year 2018 for the sum of $ 200,000. The company is subject to a tax depreciation rate of 25%. According to the following table, what is the depreciation allowance that this company can claim in 2020? (in the following picture : Année is year)

On 1 November 2019, Mushe Limited acquired a machine for N$ 100 000 formanufacturing purposes. The machine was put into use immediately. Payment of thepurchase price will take place on 15 th October 2020. Depreciation is written off at20% per annum according to the straight-line method. Wear and tear are allowed at10% per annum on the reducing balance method and is weighted on a timeproportional basis. The tax rate is 29%. The company reporting date is 31 December 1 November 2019 N$ 1= USD 1.3031 December 2019 N$ 1 = USD 1.2815 October 2020 N$ 1 = USD 1.05 RequiredShow the journal entries for 2019 and 2020 so as to comply with the requirements ofInternational Financial Reporting Standards (IFRS). Journal narrations are notrequired. (Ignore current tax)

Alankar Ltd. commenced business on 1st January 2018, when they purchased plant and equipment for 9,00,000. They adopted a policy of charging depreciation at 15% per annum on diminishing balance basis and over the years, their purchases of plants have been as follows01/01/2019 - Rs. 3,50,000 01/01/2022 - Rs. 4,00,000 On 1/1/2022 it was decided to change the method and rate of depreciation to straight line basis. On this date remaining useful life was assessed as 6 years for all the assets purchased before 1/1/2022 with no scrap value and 10 years for the asset purchased on 1/1/2022. Prepare depreciation schedule for 5 years. Books of accounts are closed on 31st December every year.

Assume that for a particular company, the only temporary difference for tax-effect accounting purposes relates to the depreciation of a newly acquired machine. The Machine was acquired on 1 July 2018 at the cost of $800,000. Its useful life is considered to be five years, after which time it is expected to have no residual value. For tax purposes, it can be fully written off over two years. The tax rate is assumed to be 30 per cent.   Required 1 Determine whether the depreciation of the Machine will lead to a deferred tax asset or a deferred tax liability? 2 What would be the deferred tax asset balance or deferred tax liability as of 30 June 2021?  3 Briefly explain how a company calculates its current liability 'income tax payable'?

A Ltd purchased four motor vehicles for $50000 each on 1/1/2015. The company depreciates motor vehicles on a straight-line basis. Their expected useful life is six years.Each motor vehicle has a residual value of $5000. For tax purposes, the motor vehicles depreciate at 20% per annum on a straight-line basis. Accounting profit before tax (PBT) for the years 2015 to 2020 is $60000 per annum. The tax rate is 12.5%.   Required   Calculations of current and deferred tax Related figures to be included in the financial statements for the years 2015 to 2020