Chowfew Pty Ltd (Chowfew) is a resident Australian company that commenced business on 1 July 2022...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Chowfew Pty Ltd (Chowfew) is a resident Australian company that commenced business on 1 July 2022 and sells music equipment to retail customers. For the income year ended 30 June 2023, Chowfew's aggregated turnover was $35 million and its accounting profit was $100,000. Chowfew has provided the following extract from its balance sheet for the income year: Balance sheet Notes As at 30 June 2023 $ Assets Sales receivable Dividend receivable Prepaid rent Provision for doubtful debts Sales invoiced in June 2023 and received in July 2023 Dividend declared on 1 June 2023 from a non- portfolio shareholding in a foreign company. The dividend was paid and received in August 2023 Rent paid on 25 June 2023 for the period from 1 July 2023 to 31 December 2023 180,000 3,000 15,000 Right-of-use assets Debts that are likely to be written off in November 2023 (20,000) Leased assets worth $80,000 less amortisation of $10,000 70,000 Liabilities Right-of-use liability The lease payments were $7,000, being $5,000 of principle and $2,000 of interest (75,000) Accrued annual leave Unpaid annual leave balance (8,000) Required Calculate Chowfew's taxable income for the income year ended 30 June 2023 by preparing a reconciliation from accounting profit to taxable income and calculating the correct tax adjustment/s (even if the adjustment is nil). Show all workings. For each net adjustment (including nil adjustments), provide the most relevant section reference. Assume the above extracts from Chowfew's balance sheet contain the only possible tax adjustments. Chowfew Pty Ltd (Chowfew) is a resident Australian company that commenced business on 1 July 2022 and sells music equipment to retail customers. For the income year ended 30 June 2023, Chowfew's aggregated turnover was $35 million and its accounting profit was $100,000. Chowfew has provided the following extract from its balance sheet for the income year: Balance sheet Notes As at 30 June 2023 $ Assets Sales receivable Dividend receivable Prepaid rent Provision for doubtful debts Sales invoiced in June 2023 and received in July 2023 Dividend declared on 1 June 2023 from a non- portfolio shareholding in a foreign company. The dividend was paid and received in August 2023 Rent paid on 25 June 2023 for the period from 1 July 2023 to 31 December 2023 180,000 3,000 15,000 Right-of-use assets Debts that are likely to be written off in November 2023 (20,000) Leased assets worth $80,000 less amortisation of $10,000 70,000 Liabilities Right-of-use liability The lease payments were $7,000, being $5,000 of principle and $2,000 of interest (75,000) Accrued annual leave Unpaid annual leave balance (8,000) Required Calculate Chowfew's taxable income for the income year ended 30 June 2023 by preparing a reconciliation from accounting profit to taxable income and calculating the correct tax adjustment/s (even if the adjustment is nil). Show all workings. For each net adjustment (including nil adjustments), provide the most relevant section reference. Assume the above extracts from Chowfew's balance sheet contain the only possible tax adjustments.
Expert Answer:
Answer rating: 100% (QA)
To calculate Chowfew Pty Ltds taxable income for the income year ended 30 June 2023 we need to prepa... View the full answer
Posted Date:
Students also viewed these accounting questions
-
Homer Homes Pty Ltd (HH) is an Australian tax resident company and the head company of the HH income tax consolidated group. HH sells electronics and home appliances. HH also provides installation...
-
Waterway's Blooms purchased a delivery van with list price of $40200. The company was given a $3800 cash discount by the dealer and paid $2000 sales tax. Annual insurance on the van is $900. As a...
-
On July 1,the first day of their fiscal year, the City of Denver sold bonds with a face value of $10,000,000 at 102 percent par. The bonds bear annual interest at 6 percent; interest is payable...
-
There are two traffic lights on Shellys route from home to work. Let E denote the event that Shelly must stop at the first light, and define the event F in a similar manner for the second light....
-
Determine the kinetic energy of rod AB of Prob.18.3. 12 in. D 12 in. 00 20 B
-
The Plant Assets account of Star Media shows the following: Star Media sold plant assets at a \(\$ 10,000\) loss. Where on the statement of cash flows should Star. Media report the sale of plant...
-
How might a developing countrys decision to reduce trade restrictions such as import tariffs affect its ability to borrow in the world capital market?
-
1. Chris Blazo, owner of the C&C Fishieries, wants to determine the present value of his investment. The company is currently in the development stage but hopes to "begin" operations early next year....
-
Consider a gas mixture of acetone (1) and methanol (2) with y = 0.514 and liquid mixture of the same components with x = 0.405. Both mixtures are at 55 C and 95.0 kPa. Given also at 55 C, Pat = 97.25...
-
After paying the investment bankers a 6% spread estimates net proceeds from its IPO = $9,786,168 current share price = $32 company shares outstanding = 730,645 how many should they issue during the...
-
A company produces shirts and sells them on average for $40 with a unit contribution margin of 32%. If the total fixed costs are $300,000: What is the breakeven point? How many units must be sold to...
-
A 1-year zero coupon bond has a YTM of 10%. A 2-year zero coupon bond has a YTM of 12%. Both are riskless. What is the price of a 2-year, annual 5% coupon paying bond with face value of $1,000?
-
An investor has $5,000 invested in stock A and $5,000 in stock B. The daily volatilities of A and B are 0.5% and 1.50% respectively and the coefficient of correlation is 0.60. What is the one day 99%...
-
Analyze In the space below: 1. Define the Purpose of your Report. 2. Determine Who your Primary Audience is. a) Consider the extent to which it might go to someone else. What if it does? 3. ...
-
Using C++ and functions: Write a program that reads in a line of text and outputs the line with all the digits in all integer numbers replaced with 'x'. Please enter a line of text: My userID is...
Study smarter with the SolutionInn App