Calculate Energy Resources tax liability.? Amos exploration Limited and energy Limited are joint venture partners who hold
Question:
Calculate Energy Resources tax liability.?
Amos exploration Limited and energy Limited are joint venture partners who hold 50% and 35% interest in the Volta Oil Production field (V.O.P.F) respectively. They have a petroleum agreement with the government of Ghana. The fiscal terms of the agreement include; Royalties of 5%; Initial interest of 10% and additional participation interest of 5%. In 2016, the total production from the V.O.P.F was 50,000,000 barrels of crude oil and was sold at an average price of GH100 per barrel. Lead exploration Ltd and energy resources incurred cost of GH575,000 and GH462,500 respectively in 2016. Assuming they are not entitled to any cash allowances,
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill