Baron Ltd is a manufacturing company located at Techiman. The following information is extracted from the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Baron Ltd is a manufacturing company located at Techiman. The following information is extracted from the books of the company for the 2021 year of Assessment. The company made a total loss of GHS200,000 during the year under review. After a tax audit carried out by officials of the Ghana Revenue Authority, it was detected that the accountant committed a casting error which resulted in the overstatement of the total expenses. Total expenses should have been GHe 580,000 instead of the GH 680,000 stated. Salaries and Wages include a monthly of GHe 10,000 paid to the Managing Director's son who just completed his Mphil in Finance programme. Other senior members of staff with the same qualification and experience are paid monthly salaries of GH49,000. iv. Donations is made up of the following: PUC Scholarship Fund - GHe 10,000; Korle Bu Children's ward-GH25,000; Mamprugu District Assembly-GH25,000, Hassacres Football Club - GH¢15,000 i. ii. 111. Only 40% of the premises is used for the business operations, the rest is for private activities of the Managing Director. vi. The accountant confessed that 40% of the hospitality expenses were used for providing lunch for the Managing Director. vii. GH 30,000 of the legal expenses was paid to a lawyer to defend the company for late payment of tax. viii. Repairs and maintenance include an amount of GHe80,000 spent on providing air conditioners for all the offices. The gross profit includes an amount of GHe 10,000 net dividend received X. Capital allowance granted for the year amounts to GH€ 50,000 xi. Half of the office expenses were spent on customer loyalty promotions; one quarter was used to purchase office stationery and the rest was spent on entertainment of private guests of the Managing Director. xii. The company has an unrelieved loss brought forward amounting to GHe 15,000 ix. Required: Determine the net tax liability of Baron Ltd for the 2021 year of Assessment. Baron Ltd is a manufacturing company located at Techiman. The following information is extracted from the books of the company for the 2021 year of Assessment. The company made a total loss of GHS200,000 during the year under review. After a tax audit carried out by officials of the Ghana Revenue Authority, it was detected that the accountant committed a casting error which resulted in the overstatement of the total expenses. Total expenses should have been GHe 580,000 instead of the GH 680,000 stated. Salaries and Wages include a monthly of GHe 10,000 paid to the Managing Director's son who just completed his Mphil in Finance programme. Other senior members of staff with the same qualification and experience are paid monthly salaries of GH49,000. iv. Donations is made up of the following: PUC Scholarship Fund - GHe 10,000; Korle Bu Children's ward-GH25,000; Mamprugu District Assembly-GH25,000, Hassacres Football Club - GH¢15,000 i. ii. 111. Only 40% of the premises is used for the business operations, the rest is for private activities of the Managing Director. vi. The accountant confessed that 40% of the hospitality expenses were used for providing lunch for the Managing Director. vii. GH 30,000 of the legal expenses was paid to a lawyer to defend the company for late payment of tax. viii. Repairs and maintenance include an amount of GHe80,000 spent on providing air conditioners for all the offices. The gross profit includes an amount of GHe 10,000 net dividend received X. Capital allowance granted for the year amounts to GH€ 50,000 xi. Half of the office expenses were spent on customer loyalty promotions; one quarter was used to purchase office stationery and the rest was spent on entertainment of private guests of the Managing Director. xii. The company has an unrelieved loss brought forward amounting to GHe 15,000 ix. Required: Determine the net tax liability of Baron Ltd for the 2021 year of Assessment.
Expert Answer:
Answer rating: 100% (QA)
Answer Net tax liability Total Tax Payable Tax Reliefs Total Tax Payable Taxable income x T... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
Students also viewed these accounting questions
-
The following information was extracted from the books of Pesamali bank for the year ended 31 st December 2020. Sh. "000" Loss on disposal of shares 94,000 Income from trading activities 480,000...
-
The following information was extracted from the 1998 annual report of AT&T Corporation (all dollar amounts are in millions): ¢ 1998 data reflect $2.5 billion of pretax business restructuring...
-
The following information was extracted from Citigroup, Inc.s 2009 annual report. From letter to shareholders: Financial Strength While Citi started the year as a TARP institution receiving...
-
Determine which sets of vectors are orthogonal. 3 -2 1 3 -1 3 -3 4 3 8 7 0
-
Youve just taken on a 20-year, $150,000 mortgage with a quoted interest rate of 6 percent calling for payments semiannually. How much of your first years loan payments (the initial two payments, with...
-
Find the covariance of the random variables A' and Y of Exercise 3.44.
-
Consider the following cash flow profile and assume MARR is 10 percent/year and the finance rate is 4 percent/year. a. Determine the MIRR for this project. b. Is this project economically attractive?...
-
Accounting for R&D Costs Margaret Avery Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2009 the company expends $325,000 on a research...
-
Q1. A common base transistor amplifier has an input resistance of 20 Q and output resistance of 100 kn. The collector load is 1 kQ. If a signal of 500 mV is applied between emitter and base, find the...
-
Southeastern Foods has hired you to analyze their distribution-system design. The company has 11 distribution centers, with monthly volumes as listed below. Seven of these sites can support...
-
Rosey's Operating Cash Flows Rosey Inc. sales revenues is RM 2 6 . 8 million in Year 1 , which is expected to increase by 5 % year on year until year 4 , then with a decrease of 4 % from the previous...
-
How most of the problems occurring in this situation stems from that inflexible money supply. With the Fed choosing to forego monetary policy, other factors in the market will naturally adjust to...
-
1. Show various Utility Curves and how H&M's prices touches various Utility Curves. Explain How. 2. H&M uses product line pricing, where products within the same line are priced differently based on...
-
5.2 INFORMATION: Trencor Limited has provided the following information: 1. Total sales ACTUAL BUDGETED July August September October November December R520 000 R540 000 R580 000 R610 000 R650 000...
-
During the Covid epidemic, McDonald's, like other food brands, encountered issues as a result of fewer customers and supply chain interruptions. These variables influenced McDonald's product demand...
-
Finished goods inventory on September 30, 2019 was 3,000 units. Projected sales for January are 25,000 units. The sales price is $100 per unit. The company tries to keep ending finished goods...
-
Translate the following statements into chemical equations and then balance the equations : (a) Hydrogen sulphide gas burns in air to give water and sulphur dioxide. (b) Phosphorus burns in oxygen to...
-
Wilsons Auto Repair ended 2011 with Accounts Receivable of $85,000 and a credit balance in Allowance for Uncollectible Accounts balance of $11,000. During 2012, Wilsons Auto Repair had the following...
-
Railcar Leasing Inc. early adopts ASU 2016-02 on January 1, 2017. Also, on January 1, 2017, Railcar Leasing Inc. (the lessor) purchased 10 used boxcars from Railroad Equipment Consolidators at a...
-
Maffett Ticket Brokers is a reseller of tickets to sporting events and concerts. During 2019, Maffett sold gift cards totaling $250,000. Based on past experience, Maffett expects that 1% of the gift...
-
The following is the preclosing trial balance of Ralph Retailers, Inc.: The following additional information is provided: a. The company paid a salary advance of $5,000 to one of its employees, a...
-
Briefly describe what is meant by DEI efforts.
-
Explain each of the four examples of a bona fide occupational qualification.
-
What important precedents were set by the Griggs v. Duke Power Company case? The Albemarle v. Moody case?
Study smarter with the SolutionInn App