Required: Prepare the capital allowance and residual expenditure schedules for the above assets for the years of assessment 2018 to 2021.
Q: Rosy, Roland and Robert were partners with capital balances as at year end of P250,000; P350,000;…
A: The question is related to Partnership Accounting. In Partnership Net Income after taxes will be…
Q: Units 100 50 80 40 60 120 Cost $10 12 Beginning inventory Purchase (April 3) Sale (April 10)…
A: LIFO is last in first out inventory valuation method which says that inventory which is purchased…
Q: Tango Company produces joint products M, N, and T from a joint process. This information concerns a…
A: Joint cost means the cost which is incurred jointly on all the products and can't be determined…
Q: n a certain country, electricity charges are calculated based on a the following table: Fixed charge…
A: Total charges will be sum of fixed charge and variable cost Fixed charge given in question = $ 4…
Q: Jasin Company projected operating income (based on sales of 450,000 units) for the coming year as…
A: Break-Even point in sales revenue = Fixed cost/Contribution margin ratio
Q: lect the best answer for the question 12. One of the primary purposes of preparing a trial balance…
A: Financial accounting refers to a type or branch of accounting which records the financial…
Q: During its most recent fiscal year, Dover, Incorporated had total sales of $3,200,000. Contribution…
A: Contribution margin: The difference between the sales and the variable costs is called contribution…
Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…
A: Contribution margin = Sales price (-) variable cost Contribution margin ratio = Contribution…
Q: A process manufacturer that uses the weighted-average method reports the following. Compute the…
A: Process costing is used in an organization where a similar kind of product is produced and goods are…
Q: Sales Contribution margin Total direct fixed costs Total operating assets Jan. 1, 2022 Total…
A: Return On Investment (ROI) : This ratio is the relationship of profit before interest and taxes and…
Q: Construct a material usage and purchases budget of the Bara Enterprise.
A: A material usage and purchases budget is a statement of estimation of a material required to produce…
Q: An equipment was bought in the beginning of January 2014 with the Original Cost of $48.000. The…
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Solaris Company Limited , makers of solar water heaters, uses a perpetual inventory system. The…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: 7:47 Adjusting Entry Exerc... Name: Principles of Accounting I Chapter3 - Adjusting Entries ACC101…
A: 2) prepaid rent for 3 month is $3000 . One month rent is $1000. 3) supplies used during the period…
Q: Income statement ? The following selected accounts and their current balances appear in the ledger…
A: Lets understand the basics. Income statement is prepared for the purpose of obtaining result of the…
Q: On January 1, ABC Company has 120,000 outstanding ordinary shares. During the year, ABC reported net…
A: When all the convertible securities are converted into equity shares it is known as diluted…
Q: Assume Ikeo Inc. sold $80,000 of gift cards during the last two weeks of December 2020. No gift…
A: Journal entries are the primary reporting of the daily transactions in the books of accounts. It is…
Q: Accounting for assets question. 2. a) The following information we got from Waridi mean traders for…
A: As per our guidelines, only 1 question can be answered. So here is the solution for question 2(a)…
Q: Finley Company End-of-Period Spreadsheet For the Year Ended December 31 Adjusted Trial Balance…
A: The closing entries are prepared to close the temporary accounts of the business including revenue,…
Q: ABC prepares statements on the cash basis. The balance sheet as of December 31, 2021 and income…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: Birtle Corporation reports the following statement of financial position information for 2017 and…
A: Source or use of cash - Source or uses of cash means the increase or decrease in Assets or…
Q: Q2 The following was extracted from the accounting records of a trader on 28 February 2015:…
A: Ratio analysis is very important technique of decision making. Under this several ratios are…
Q: Estes Company has been manufacturing its own wheels for its scooters. The company is presently…
A: variable manufacturing overhead to production at the rate of = 30% of direct labor cost Labor…
Q: Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes…
A: As per our guidelines we are supposed to answer only 3 parts of the question only.
Q: a. Fixed corporate costs are allocated on the basis of relative revenue. What is the target…
A: In the above question, Fixed costs are allocated on the basis of relative revenue. Therefore to…
Q: Acme Inc. has the following information available: Actual price paid for material Standard price for…
A: Material Price Variance = (Standard Price - Actual Price) x Actual Quantity Material Quantity…
Q: Orange Co. is a customer of Watermelon Co. On June 17, 2022 Orange Co. returned back the merchandise…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Accountants refer to an economic event as a
A: The accountant is the person that keeps a record of all transactions of the company. The accountant…
Q: 2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total…
A: Working: Computation:
Q: Johnston Corp. manufactures computer desks in its Syracuse, New York, plant. The company uses…
A: Costs of manufacturing include material costs as well as the costs of turning raw materials into…
Q: O'Connor Company ordered a machine on January 1 at a purchase price of $95,000. On the date of…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: The payroll register of Seaside Architecture Company indicates $960 of social security and $260 of…
A: Payroll is the business process of paying employees running payroll consists of calculating employee…
Q: Determine the total interest expense for Year 1. $ 4. Will the bond proceeds always be less than the…
A: Discount on bond - It is the difference between the face value of a bond and the reduced price at…
Q: 6. Rankin Ltd has entered into an agreement to lease an item of equipment that produces teddy bears.…
A: The interest rate is the proportion of the principal—the amount lent—charged by a lender to a…
Q: Data relating to the shareholders’ equity of ABC Co. during December 31 are as follows: 8%…
A: Preference dividend will be added to preference share capital. Cumulative Preference Shares :…
Q: A man is paid on a salary-plus-commission basis. He receives $275 weekly in salary and a commission…
A: Given information Weekly salary = $275 Commission = 5% over Sales of $2020 Weekly sales = $7825
Q: On January 1, 2015, ML Company grants 100 cash share appreciation rights to each of its 500…
A: As per our guidelines, only 1 question is solved. Here is the solution for question number 2
Q: On January 2, 2019, Whistler Company purchased land for $480,000, from which it is estimated that…
A: Depletion refers to the measure which is linked with the depletion amount of the extraction of the…
Q: Assume that you plan to buy a share of National Company’s stock today and to hold it for 2 years.…
A: Present Value :— It means Value of Cash Flow today. It consider Time value of money for its…
Q: The following selected accounts and their current balances appear in the ledger of Fernandez Co. at…
A: Introduction: Income statement: All revenues and expenses are to be shown in income statement. It…
Q: Marvin had the following transactions: Salary $50,000 Compensation of body injury due to…
A: Adjusted gross total income is calculated by subtracting the deductions for AGI or specified to be…
Q: An adverse opinion is most likely to be included in an audit report when Multiple Choice A…
A: There are 4 types of audit opinions. 1.unqualified 2.Qualified 3.Disclaimer 4.Adverse opinion
Q: On June 1, 2022 Bedu, Budi, and Bobi were three friends who wanted to form a new firm which would be…
A: Partnership is one of type of business formation where two or more individuals come together and…
Q: National Co.'s average daily payment is P10,000 meanwhile daily collection average P5,000. The…
A: a) Calculation of average daily disbursement float :- Average daily disbursement float = 10,000 x…
Q: Autumn Designs & Decorators issued a 120-day, 8% note for $78,000, dated April 13 to Zebra Furniture…
A: The note receivable is an asset for the business which is issued by the debtors of the business.
Q: Statement 1: Examples of period costs include payments to lawyers for litigation expenses related to…
A: Period costs are costs incurred or expensed in the particular period. It includes selling and admin…
Q: Solve the following three independent scenarios: A grocery store is considering the purchase of a…
A:
Q: A $1000 face value, 8% bond (interest payable semiannually) has 20 years remaining until maturity…
A: Lets understand the basics. When market interest rate is more than the bond interest rate then value…
Q: Gibson Corporation’s balance sheet indicates that the company has $580,000 invested in operating…
A: Note: As per our guidelines, we will solve the first three subparts for you. 1. Sales =…
Q: Martin Services Company provides its employees vacation benefits and a defined contribution pension…
A: INTRODUCTION: After retiring, the company makes a specified recurring payment to the employee. The…
Question 6
(b) Tingtong bought the following assets during the year 2017 for his retail
business. The Inland Revenue has sent notice to him that he is being
audited for the years of assessment 2018 to 2022.
A van costing RM30,000
Air conditioner costing RM3,000
Table and chairs costing RM2,000
Computer costing RM4,000
Required:
Prepare the capital allowance and residual expenditure schedules for the above
assets for the years of assessment 2018 to 2021.
Explain and elaborate the answer according to the question. Thank you.
Step by step
Solved in 2 steps
- BFN3114: Tax Planning Tutorial 6: Capital Allowance & Industrial Building Allowance QUESTION 1 Mayfair Sdn. Bhd. which prepares account to 31.12 annually has the details of the following expenditures: RM'000 1. Plant and machinery (heavy) 2. Truck 200 300 3. Air- conditioners 50 These assets were acquired during the year 2016. Compute the capital allowance (Initial allowance & Annual Allowance) of the fixed assets for relevant years of assessnient (2016, 2017, 2017, 2018 & 2019)a. Identify the following transactions as either Capital Expenditure or RevenueExpenditure.i). Pay salary and wages for November 2020 amounting to RM6,200.ii). Purchase vehicle for business use amounting to RM145,000.iii). Depreciation expense for financial year ended 2020 amounting to RM21,000.iv). Purchase stationery for office use amounting to RM450.v). Acquire a building amounting to RM520,000.vi). Repair office door amounting to RM800.Lance is entering an invoice for a new item of equipment in the accounts. The invoice shows the following costs: Water treatment equipment $39,800 Delivery $1,100 Maintenance charge $3,980 Sales tax $7,854 Invoice total $52,734 Lance is registered for sales tax. What is the total value of capital expenditure on the invoice?
- Question 4a. Ahmad bought a new equipment at RM120,000 on 1 July 2017. He wasundecided whether to depreciate the equipment using straight line method orreducing method at 20% per annum.The equipment is expected to have no residual value.You are required to calculate the amount of depreciation to be charged againsteach financial year ending 31 December 2017, 31 December 2018 and 31December 2019 using the straight line method and reducing balance method.Show your answer in the following format (per attache) b. The following are balances brought forward from 31 December 2018 for KCDeco Center :RM RMMotor Vehicles 100,000Less : Provision fordepreciation (20,000)80,000The motor vehicles were depreciated at 15% per annum using reducing balancemethod. KC bought a new vehicle on 1 October 2019, cost of the new vehiclewas RM120,000. You are required to prepare the following accounts for financialyear ending 31 December 2019 :i. The Motor Vehicle Accountii. The Provision for Depreciation…Exercise 13-29 (Algorithmic) (10.3) Sebastian purchases two pieces of equipment for $147,000. Appraisals of the equipment indicate that the fair market value of the first piece of equipment is $102,900 and that of the second piece of equipment is $161,700. What is Sebastian's basis in these two assets? If required, round your interim calculations to two decimal places. Use rounded amounts in subsequent computations. If required, round final answers to the nearest dollar. Sebastian's basis for the first piece of equipment is X and I X for the second piece of equipment.QUESTION 2 The Lark Company purchases a warehouse on December 28, 2020 for $150,000 (which includes all capitalizable costs). They put the warehouse into service on January 1, 2021, assigning it a useful life of 28 years and a salvage value of $10,000. Enter your answers below in whole dollars without a $ sign (e.., х). a. Calculate the depreciable cost of the warehouse. b. Calculate the annual depreciation expense that Lark must recognize for the warehouse over the next 28 years. c. Calculate the net book value of the warehouse as of December 31, 2025 (after appropriate adjusting journal entry). d. As of December 31, 2025 (after appropriate adjusting journal entry), how much total additional depreciation expense should be recognized over the remaining useful life of the warehouse?
- Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000B. Upon expiration of the pioneer status, Brownish Bhd is planning to apply for reinvestment allowance. The following expenditure is expected to incur by the company in the year 2027 in relation to its business expansion program: Expenditure Purchase of land RM 4,000,000 Hi-technology plant and machineries New factory building Construction 1,900,000 2,660,000 of new automated storeroom 300,000 Office equipment 165,000 2027 Adjusted income Capital allowances Interest in RM 10,200,000 2,000,000 income 185,000Question 1 Komano Berhad purchased a piece of land on 1 April 2018 to be used as its warehouse site for RM120,000. In order for Komano Berhad to effectively use the site, a vacant and unoccupied old building on the land was demolished. A new building was then contructed and completed on 31 December 2018. The costs incurred during the period are listed below: Legal fees for obtaining legal tittle of the land RM 4,000 Demolition of the vacant building RM 8,000 Fees for architects in erecting the new building RM24,000 Property taxes on land (Beginning 1 April 2017) RM6,000 Loan obtained to construct the land, 10% RM100,000 Construction costs RM300,000 Scrapped materials resulting from the demolition of the old building were sold for RM4,000. Required: a) Ascertain the amount that Komano Bhd should capitalise as the cost of the land and the cost of new building, separately. b) Explain why each of the items listed were included or not included in your answer to part (a), justifying your…
- A company resident in Jamaica purchased the following assets in 2021: Cost $ USD 38,000 50,000 4,000 72,000 Asset Honda Motor car purchased in March 2020 Heavy Equipment Computer (CPU) Factory Buildings (a) What would be the difference in capital allowances for 2022 if this company were resident in Trinidad and Tobago instead of Jamaica for tax purposes.Exercise 14-20 (Algorithmic) (LO. 3) Sebastian purchases two pieces of equipment for $161,000. Appraisals of the equipment indicate that the fair market value of the first piece of equipment is $112,700 and that of the second piece of equipment is $177,100. What is Sebastian's basis in these two assets? If required, round your interim calculations to two decimal places. Use rounded amounts in subsequent computations. If required, round final answers to the nearest dollar. Sebastian's basis for the first piece of equipment is $ 43,953 X and $ 108,031 X for the second piece of equipment. Show Transcribed Text 1st equip 2nd equip 1st ratio 2nd ratio 1st basis 2nd basis S 112700 177100 289800 SUM(E10:E11) 0.39 =E10/(E12) 0.61 =E11/(E12) C 43828 E10 E14 108228 =E11*E15 112700 177100 289800 -SUM(G10:G11) 0.39 0.61 43953 =G10 G14 108031 =G11 G15A. ACQUISITION COSTS Mr. Ardi acquired land at a cost of Rp4.200.000.000 on April 1, 2019. In addition to this cost, he had to pay the following expenses: a. Commission fee, 2% from the land price, Rp84,000,000 b. Land acquisition tax Rp12,000,000 c. Removal cost of old (unused) building Rp20.500.000. Mr. Ardi received Rp17.000.000 from the sales of salvage materials. d. Rpl10.000.000 to build a fence e. Rp215.000.000 to build a parking lot Instructions: Prepare the journal entries for the above transaction! (4%)
