Which of the following statement describes the correct treatment for claiming exemption in the year of assessment 2024?
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Peter and John incorporated XYZ Pte Ltd in 2021 which is in the business of selling apparels. On 10 June 2022, XYZ Pte Ltd incorporated a wholly owned subsidiary, ABC Pte Ltd to provide design services for apparels. All the board meetings of ABC Pte Ltd and XYZ Pte Ltd were held in Singapore and both entities have 31 December as their financial year end.
Which of the following statement describes the correct treatment for claiming exemption in the year of assessment 2024?
A. Both ABC Pte Ltd and XYZ Pte Ltd are eligible for the start-up tax exemption.
B. Only ABC Pte Ltd is eligible for the start-up tax exemption
C. OnlyXYZPteLtdiseligibleforthestart-up tax exemption
D. Both ABC Pte Ltd and XYZ Pte Ltd are not eligible for the start-up tax exemption.
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- Best Pte Ltd was incorporated on 15 November 2018 as a trading company and its first set of financial statements was prepared for the period from 15 November 2018 to 31 December 2018. It is wholly owned by Canton Pte Ltd, tax resident in Singapore. Which of the following statements hold TRUE for Best for the Year of Assessment (YA) 2020? (i) Best can claim tax exemption under the start-up tax exemption scheme as YA 2020 is still within the first three YAs of the company.(ii) Best can claim tax exemption under the start-up tax exemption scheme as it is incorporated in Singapore.(iii) Best cannot claim tax exemption under the start-up tax exemption scheme as the shareholder is not an individual Question 17 options: 1) i only. 2) i and ii only. 3) iii only. 4) None of the above. Next Page1. Paris paid Cherry $333,333 on 12/31/2020 for the exclusive right to market a particular product using the Cherry Co name and logo in promotional material. The franchise follows the rules of Going Concern What is the net impact on net income of any entry(ies) necessary related to the franchise at 12/31/2021?Bravery Pte Ltd, was incorporated on 16 January 2019 as a manufacturing company with an accounting year end of 31 December. It is wholly owned by XYZ Ltd. It has a chargeable income before exempt income of $1,000,000 for the year ended 31 December 2021. Calculate its net tax payable for Year of Assessment 2022. 1) $120,575 2) $148,750 3) $144,075 4) $152,575
- The following selected circumstances relate to pending lawsuits for Erismus, Incorporated Erismus’s fiscal year ends on December 31. Financial statements are issued in March 2025. Erismus prepares its financial statements according to U.S. GAAP. Required: Indicate the amount Erismus would record as an asset, a liability or if no accrual would be necessary in the following circumstances. Erismus is defending against a lawsuit. Erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,430,000. Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in court. If it loses, management believes that damages could fall anywhere in the range of $2,830,000 to $5,660,000, with any damage in that range equally likely. Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in court.…Garth, Corporation and Waite Inc. are privately held entities with a September 30 fiscal year end. Garth Corporation and Waite Inc. (a competitor of Garth) have been engaged in long-standing litigation over trademark infringement matter. The following is a summary of specific events that have taken place related to this matter: In May, 2020, Garth filed a claim against Waite for trademark infringement. The case is scheduled to be heard by a judge in December 2021. For the year ended September 30th, 2021, attorneys for Waite advised that they strongly believed that Waite would not be successful in the case. The attorneys stated that this loss was probable and represented that the estimate of the settlement would be in the range of $5 million to $10 million. Garth’s attorneys have advised Garth Corporation that they also agree with Waite’s attorneys’ assessment of the likelihood of their success and the amount of the probable settlement. Based upon this advice from the attorneys…What amount should be recorded as accrued liability on December 31, 2021 in relation to this event? * 1. Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the year ended December 31, 2021 in relation to a labor case. The case was settled for P2,500,000 on February 28, 2022, a week before the financial statements for the year ended December 31, 2021 were authorized for issue. What amount should be recorded as accrued liability on December 31, 2021 in relation to this event? A. 1,500,000 B. 2,500,000 C. 1,000,000 D. 0 E. None of them
- Garth, Corporation and Waite Inc. are privately held entities with a September 30 fiscal year end. Garth Corporation and Waite Inc. (a competitor of Garth) have been engaged in long-standing litigation over trademark infringement matter. The following is a summary of specific events that have taken place related to this matter: In May, 2020, Garth filed a claim against Waite for trademark infringement. The case is scheduled to be heard by a judge in December 2021. For the year ended September 30th, 2021, attorneys for Waite advised that they strongly believed that Waite would not be successful in the case. The attorneys stated that this loss was probable and represented that the estimate of the settlement would be in the range of $5 million to $10 million. Garth’s attorneys have advised Garth Corporation that they also agree with Waite’s attorneys’ assessment of the likelihood of their success and the amount of the probable settlement. Based upon this advice from the attorneys…Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the year ended December 31, 2021 in relation to a labor case. The case was settled for P2,500,000 on February 28, 2022, a week before the financial statements for the year ended December 31, 2021 were authorized for issue. What amount should be recorded as accrued liability on December 31, 2021 in relation to this event? A. 1,500,000 B. 2,500,000 C. 1,000,000 D. 0 E. None of themGarth, Corporation and Waite Inc. are privately held entities with a September 30 fiscal year end. Garth Corporation and Waite Inc. (a competitor of Garth) have been engaged in long-standing litigation over trademark infringement matter. The following is a summary of specific events that have taken place related to this matter: In May, 2020, Garth filed a claim against Waite for trademark infringement. The case is scheduled to be heard by a judge in December 2021. For the year ended September 30th, 2021, attorneys for Waite advised that they strongly believed that Waite would not be successful in the case. The attorneys stated that this loss was probable and represented that the estimate of the settlement would be in the range of $5 million to $10 million. Garth’s attorneys have advised Garth Corporation that they also agree with Waite’s attorneys’ assessment of the likelihood of their success and the amount of the probable settlement. Based upon this advice from the attorneys…
- During 2019, Analee Company filed suit against another entity seeking damages for patent infringement. On December 31, 2019, the legal counsel believed that it was probable that the entity would be successful against the other entity for an estimated amount of P1,500,000. On April 15, 2020, the entity was awarded P1,000,000 and received full payment thereof. The 2019 fınancial statements were issued on March 31, 2020. How should this award be reported in the 2019 financial statements? O As disclosure of contingent asset P1,000,000 As disclosure of contingent asset P1,500,000 O As receivable and revenue P1,000,000 O As receivable and deferred revenue P1,000,000Lee Manufacturing Corporation was incorporated on January 3, 2018.The corporation's financial statements for its first year's operations werenot examined by a CPA. You have been engaged to examine the financialstatements for the year ended December 31, 2019, and your examinationis substantially completed. Lee's trial balance at December 31, 2019,appears as follows: The following information relates to accounts that may vet requireadjustment:1. Patents for Lee's manufacturing process were acquired January2, 2019, at a cost of $68,000. An additional $17,000 was spent inDecember 2019 to improve machinery covered by the patents andcharged to the Patent account. Depreciation on fixed assets hasbeen properly recorded for 2019 in accordance with Lee's practicewhich provides a full year's depreciation for property on hand June30 and no depreciation otherwise. Lee uses the straight-linemethod fix all depreciation and amortization and amortizes itspatents over their legal life. 2. On January 3.…Chainsaw Ltd is one of the largest and fastest growing companies in the timber industry in the Limpopo province. It was incorporated in 2015 and has a 31 December financial year end. Chainsaw Ltd is a registered VAT vendor and so are all other entities trading with it. VAT is levied at 15%. The following is an extract from Chainsaw Ltd's asset register for the year ended 31 December 2019: Land and Buildings On 1 February 2018, Chainsaw Ltd bought a residential property from Mrs Sprucewood at a cost of R 3 800 000 (Excluding VAT). Transfer duty of R 200 000 (Excluding VAT) was paid on the same date. Of the total cost of the property, 75% was attributable to the buildings and the rest to the land. Chainsaw Ltd wanted to convert the property into an office building. The following expenses were incurred evenly to convert the property: • Painting • Plumbing • Room improvements Transportation of materials used R2 300 Incl. VAT R1 150 Incl. VAT R5 750 Incl. VAT R 11 500 Incl. VAT On 30 June…