Future limited was incorporated on 1 January 2020 and commenced business activities within that same period....

  

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Future limited was incorporated on 1 January 2020 and commenced business activities within that same period. The following information relates to the activities of Future Limited: 1. Closing Inventory $120.000 2. Provision for Bad debt for 2021 increase to $13,500 Depreciation rate for the following: Computer -25% 3. Furniture and Fittings -10% Motor Vehicle-25% Building -2% 4. Consultancy fees relates to the purchase of fixed assets 5. Future Limited is part of Group TimeLine Ltd where one of its subsidiaries made a tax loss of $175,000.00 for the period year ended 31st December 2021. 6. Salaries of $25,000.00 relates to bonus for 2021 to be paid by Future Ltd on 25th January 2022. Prepare the corporation tax return for future limited stating clearly all assumption made: • Group loss relief should be considered for Future Ltd in your calculation of return and all the necessary tax credit available to Future Ltd. Ensure you clearly state the Statement of Financial Income and Statement of Financial Position as at December 2021 with all necessary Year End adjustments. ● Reconciliation of Accounting Profit to Tax Profit should be shown on your return • Clearly show all relevant workings. ● Computer Furniture and Fitting Motor Vehicle Accumulated Depreciation Computer Accumulated Depreciation Furniture and Fitting Accumulated Depreciation Motor Vehicle Building Land Future Ltd Trial Balance as of 31st December 2021 Leasehold Improvement 10 years Investment Fixed Term (Syrs) Rental Income Ordinary Shares Promotional Expenses. Overseas Audit Fees Legal and Professional Fees Consultancy Fees-Capital in nature Revenue Purchases Opening Inventory Sundry payables Trade receivable Business Loan (5 years) Repairs and Maintenance Bad Debt specific Bank Bad Debt Provision Entertainment Staff Training and Development Scholarship Donation Covenanted Telephone Internet Salaries and Wages Retained Profit Directors Dividend paid $ 70,000 32,850 734,000 3,000,000 1,000,000 100,000 1,780,000 125,000 30,000 36,000 60,000 12,500,000 625,000 2,300,000 384,000 10,000 2,284,210 30,469 16,000 27,000 125,000 78,000 22,000 3,572,000 $ 17,500 3,285 183,500 120,000 100,000 25,000,000 42,000 1,600,000 12,500 2,512,744 650,000 29.591.529 29.591.529 Future limited was incorporated on 1 January 2020 and commenced business activities within that same period. The following information relates to the activities of Future Limited: 1. Closing Inventory $120.000 2. Provision for Bad debt for 2021 increase to $13,500 Depreciation rate for the following: Computer -25% 3. Furniture and Fittings -10% Motor Vehicle-25% Building -2% 4. Consultancy fees relates to the purchase of fixed assets 5. Future Limited is part of Group TimeLine Ltd where one of its subsidiaries made a tax loss of $175,000.00 for the period year ended 31st December 2021. 6. Salaries of $25,000.00 relates to bonus for 2021 to be paid by Future Ltd on 25th January 2022. Prepare the corporation tax return for future limited stating clearly all assumption made: • Group loss relief should be considered for Future Ltd in your calculation of return and all the necessary tax credit available to Future Ltd. Ensure you clearly state the Statement of Financial Income and Statement of Financial Position as at December 2021 with all necessary Year End adjustments. ● Reconciliation of Accounting Profit to Tax Profit should be shown on your return • Clearly show all relevant workings. ● Computer Furniture and Fitting Motor Vehicle Accumulated Depreciation Computer Accumulated Depreciation Furniture and Fitting Accumulated Depreciation Motor Vehicle Building Land Future Ltd Trial Balance as of 31st December 2021 Leasehold Improvement 10 years Investment Fixed Term (Syrs) Rental Income Ordinary Shares Promotional Expenses. Overseas Audit Fees Legal and Professional Fees Consultancy Fees-Capital in nature Revenue Purchases Opening Inventory Sundry payables Trade receivable Business Loan (5 years) Repairs and Maintenance Bad Debt specific Bank Bad Debt Provision Entertainment Staff Training and Development Scholarship Donation Covenanted Telephone Internet Salaries and Wages Retained Profit Directors Dividend paid $ 70,000 32,850 734,000 3,000,000 1,000,000 100,000 1,780,000 125,000 30,000 36,000 60,000 12,500,000 625,000 2,300,000 384,000 10,000 2,284,210 30,469 16,000 27,000 125,000 78,000 22,000 3,572,000 $ 17,500 3,285 183,500 120,000 100,000 25,000,000 42,000 1,600,000 12,500 2,512,744 650,000 29.591.529 29.591.529