MNC Mining Corporation is a mining company operating an underground mine in Zambia. The company is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
MNC Mining Corporation is a mining company operating an underground mine in Zambia. The company is engaged in the extraction of copper. The company made the following exports of copper in the following months of the charge year 2019: March 2019 June 2019 October 2019 December 2019 The Zambian kwacha per US$1 exchange rate approved by the Commissioner General from January 2019 to 31 December 2019 should be taken to be K11.50/ US$1. The average London Metal Exchange (LME) cash prices per metric tonne were as follows: US$6,300 US$5,900 US$7,600 US$4,400 March June October December Required: (a) Explain the meaning of the following terms in the context of the taxation of mining operations: (1) (ii) (iii) 700 tonnes of Copper 1,000 tonnes of Copper 1,200 tonnes of Copper 500 tonnes of Copper Norm value Gross value Mineral Royalty (1) (ii) (b) Calculate the mineral royalty tax paid by the company, for each export, stating the due date for each payment. (8 marks) (c) Explain the consequences of the following: Paying mineral royalty late. (3 marks) (2 marks) (3 marks) Submitting the mineral royalty tax return late. (2 marks) (2 marks) MNC Mining Corporation is a mining company operating an underground mine in Zambia. The company is engaged in the extraction of copper. The company made the following exports of copper in the following months of the charge year 2019: March 2019 June 2019 October 2019 December 2019 The Zambian kwacha per US$1 exchange rate approved by the Commissioner General from January 2019 to 31 December 2019 should be taken to be K11.50/ US$1. The average London Metal Exchange (LME) cash prices per metric tonne were as follows: US$6,300 US$5,900 US$7,600 US$4,400 March June October December Required: (a) Explain the meaning of the following terms in the context of the taxation of mining operations: (1) (ii) (iii) 700 tonnes of Copper 1,000 tonnes of Copper 1,200 tonnes of Copper 500 tonnes of Copper Norm value Gross value Mineral Royalty (1) (ii) (b) Calculate the mineral royalty tax paid by the company, for each export, stating the due date for each payment. (8 marks) (c) Explain the consequences of the following: Paying mineral royalty late. (3 marks) (2 marks) (3 marks) Submitting the mineral royalty tax return late. (2 marks) (2 marks)
Expert Answer:
Answer rating: 100% (QA)
a The norm value is the average value of the mineral over a period of time used to ca... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these general management questions
-
Bijoux Corporation is a multinational company operating in several parts of the globe. The Companys headquarter is located in Paris France. Most of the companys raw materials are procured locally in...
-
ABC Corporation is a new company that buys and sells office supplies. Business began on January 1, 2021.ABC uses a periodic inventory system, and the ending inventory for each year is determined by...
-
Great West States (GWS) is a railroad company operating in the Western United States. Juanita Salazar is risk manager of GWS. At the direction of the company's chief executive officer, she is...
-
Suppose that Serendipity Bank has excess reserves of $8000 and checkable deposits of $150,000. If the reserve ratio is 20 percent, what is the size of the banks actual reserves?
-
OMalley Services, Inc., began 2014 with total assets of $216 million and ended 2014 with assets of $358 million. During 2014, OMalley Services earned revenues of $398 million and had expenses of $167...
-
Repeat Problem 66 for the resistor network shown in Figure. 4 S2
-
The probability that a randomly selected number from 1 to 50 is divisible by 4 is 0.24. Classify the statement as an example of classical probability, empirical probability, or subjective...
-
Monaghans Pizza delivery service has randomly selected 8 weekdays during the past month and recorded orders for pizza at four different time periods per day: Develop a seasonally adjusted forecasting...
-
Miller Company's contribution format income statement for the most recent month is shown below: Total Sales (25,200 units) Variable expenses $ 226,800 136,080 Contribution margin 90,720 Per Unit $...
-
There is a New York Times articleit discusses how the rise of cell phone-only households has affected surveys. Read that article and respond to the following questions via a primary post of your own...
-
Suppose a car travels 108 km at a speed of25.0m/s, and uses1.90gallons of gasoline. Only 30% of the gasoline goes into useful work by the force that keeps the car moving at constant speed despite...
-
A 2 kg ball moving at 4 m/s collides with a stationary 1 kg ball. What is the speed of the 1 kg ball after the collision if the collision is: (a) elastic, and the speed of the 2 kg ball drops to 1...
-
ABC Manufacturing Inc. Income Statement Year Ended December 31, 20X4 Sale $ 200,000 Cost of goods sold $ 120,000 Gross Profit $ 80,000 Operating Expenses $ 40,000 Loss on Sale of equipment $ 2,000 $...
-
How much work is done when a gas expands from an initial volume of 122 mL to a final volume of 165 mL against an external pressure of 868 mmHg? Express your answer tothree significant figures and...
-
If you apply a force of 20 Newtons to a 2kg object for 15 seconds, how fast will it be moving at the end of that time? (you can assume it was motionless when you started)
-
This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,000. Last year, his total tax liability was $15,000. He estimates that his tax withholding from his employer will be...
-
A partner's capital account is the essential concept for measuring economic effect, in no small part because a capital account determination is arguably based on fair market value principles. The...
-
Rosalie owns 50% of the outstanding stock of Salmon Corporation. In a qualifying stock redemption, Salmon distributes $80,000 to Rosalie in exchange for one-half of her shares, which have a basis of...
-
The EPBO for Branch Industries at the end of 2011 was determined by the actuary to be $20,000 as it relates to employee Will Lawson. Lawson was hired at the beginning of 1997. He will be fully...
-
I only get one shot at this? you wonder aloud. Mrs. Montgomery, human resources manager at Covington State University, has just explained that newly hired assistant professors must choose between two...
-
British Airways, Plc. (BA), a U.K. company, prepares its financial statements according to International Financial Reporting Standards. BA's annual report for the year ended March 31, 2009, which...
-
A thermos flask is an example of isolated system. State True (T) or False (F)
-
In a closed system, mass does not remain constant. State True (T) or False (F)
-
In a reversible process, initial and final states of the system are same. State True (T) or False (F)
Study smarter with the SolutionInn App