PART C (5 Marks) Rumba Pty Ltd is a resident company that was incorporated on 1...
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PART C (5 Marks) Rumba Pty Ltd is a resident company that was incorporated on 1 October 2016 and commenced manufacturing and selling rum. The company incurred losses in its first three years of trading: 2017/18 - $40,000; 2018/19 - $50,000; 2019/20 - $45,000 On 11 June 2018, the company's sole shareholder Willy sold 65% of the company's shares. On 8 August 2020, the company also commenced importing and selling coffee. During 2021/22, the company derived assessable income of $950,000 exempt income of $5,000 and incurred deductions (not including losses) of $935,000. The assessable income is inclusive of $12,000 of franking credits. Required: Calculate the balance of tax losses that Rumba Pty Ltd is able to carry forward from 2021/22 tax year. Show all workings and explain your answer. PART C (5 Marks) Rumba Pty Ltd is a resident company that was incorporated on 1 October 2016 and commenced manufacturing and selling rum. The company incurred losses in its first three years of trading: 2017/18 - $40,000; 2018/19 - $50,000; 2019/20 - $45,000 On 11 June 2018, the company's sole shareholder Willy sold 65% of the company's shares. On 8 August 2020, the company also commenced importing and selling coffee. During 2021/22, the company derived assessable income of $950,000 exempt income of $5,000 and incurred deductions (not including losses) of $935,000. The assessable income is inclusive of $12,000 of franking credits. Required: Calculate the balance of tax losses that Rumba Pty Ltd is able to carry forward from 2021/22 tax year. Show all workings and explain your answer.
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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
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