Maple Leaf is a gold producing mine in the Midlands area. The company sold gold worth $
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Question:
- Maple Leaf is a gold producing mine in the Midlands area. The company sold gold worth $ 5 000 000 during the year of assessment ended
- 31 December 2022.
- The following expenditure was incurred during the same year:
- Steam Generator $ 300 000
Plant and Machinery $1 850 000
Shaft sinking $1 780 000
Salaries $1 350 000
Interest $ 150 000
Administration $ 240 000
Insurance $ 150 000
Mining Buildings $ 450 000 - Notes:
- The company sold excess Plant and Machinery for $360 000 during the year.
Administration expenses included $28000 being penalty imposed by Zimra for late payment of tax due. Another $45000 was a donation to a local soccer team.
The company paid interest of $150000 for a bank loan of $1000000 which was used to finance working capital.
The company had Unredeemed capital expenditure on 31 December 2021 of $ 6 650 000.
The agreed life of mine is 20 years.
It was agreed that the Life of Mine Method is to be used to calculate Capital Redemption Allowance.
Required:
Calculate the company's taxable income or assessed loss for the year ended 31 December 2022
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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