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Question 1 Week 7 (7 marks) Jaguar Ltd purchased a machine on 1 July 2016 at...
Question 1 Week 7 Jaguar Ltd purchased a machine on 1 July 2016 at the cost of $640,000. The machine is expected to have a useful life of 5 years (straight-line basis) and no residual value. For taxation purposes, the ATO allows the company to depreciate the asset over 4 years. The profit before tax for the company for the year ending 30 June 2017 is $600,000. To calculate this profit the company has deducted $60,000 entertainment expense, and $80,000 salary expense that has not yet been paid. Also the company has included $70,000 interest as income that the company has not yet received. The tax rate is 30%. Required: (a) Calculate the company’s taxable profit and hence its tax payable for 2017. (b) Determine the deferred tax liability and/or deferred tax asset that will result. (
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Jaguar Ltd purchased a machine on 1 July 2016 at the cost of $640,000. The machine...
Jaguar Ltd purchased a machine on 1 July 2016 at the cost of
$640,000. The machine is expected to have a useful life of 5 years
(straight-line basis) and no residual value. For taxation purposes,
the ATO allows the company to depreciate the asset over 4 years.
The profit before tax for the company for the year ending 30 June
2017 is $600,000. To calculate this profit the company has deducted
$60,000 entertainment expense, and $80,000 salary expense that has...
Jaguar Ltd purchased a machine on 1 July 2016 at the cost of $640,000. The machine...
Jaguar Ltd purchased a machine on 1 July 2016 at the cost of
$640,000. The machine is expected to have a useful life of 5 years
(straight-line basis) and no residual value. For taxation purposes,
the ATO allows the company to depreciate the asset over 4 years.
The profit before tax for the company for the year ending 30 June
2017 is $600,000. To calculate this profit the company has deducted
$60,000 entertainment expense, and $80,000 salary expense that has...
Jaguar Ltd purchased a machine on 1 July 2016 at a cost of $640,000. The machine...
Jaguar Ltd purchased a machine on 1 July 2016 at a cost of
$640,000. The machine is expected to have a useful life of 5 years
(straight line basis) and no residual value. For taxation purposes,
the ATO allows the company to depreciate the asset over 4
years.
The profit before tax for the company for the year ending 30
June 2017 is $600,000. To calculate this profit the company has
deducted $60,000 entertainment expense, and $80,000 salary expense
that...
Question 3 - Week 3 (11 marks) TAKULAH Traders Ltd purchased a machine for $650 000...
Question 3 - Week 3 TAKULAH Traders Ltd purchased a
machine for $650 000 and there was an accumulated depreciation
balance of $110 000 at 30 June 2022. Its fair value is assessed at
this time, with its first revaluation as $450 000. The machine’s
useful life is expected to be 5 more years and the residual value
to be $50 000. On 1 July 2023 the asset’s fair value is $460 000
and the residual value and useful life...
Question 2: (16 marks) Wastewater Ltd acquired an item of plant on 1 July 2016 for...
Question 2: Wastewater Ltd acquired an item of plant
on 1 July 2016 for $3 660 000. When the item of plant was acquired,
it was initially assessed as having a life of 10000 hours. During
the reporting period ending 30 June 2017 the plant was operated for
3000 hours.
At 1 July 2017 the plant had a remaining useful life of 7000
hours. On 1 July 2017 the plant underwent a major upgrade costing
$234 600. Management believes that...
Question 3 - Week 10 (7 marks) On 1 March 2020 Holmes Ltd enters into a...
Question 3 - Week 10 On 1 March 2020 Holmes Ltd enters
into a binding agreement with a New Zealand company, which requires
the New Zealand Company to construct an item of machinery for
Holmes Ltd. The cost of the machinery is NZ$750,000. The machinery
is completed on 1 June 2021 and shipped FOB Auckland on that date.
The debt is unpaid at 30 June 2020, which is also Holmes Ltd’s
reporting date. The exchange rates at the relevant dates...
QUESTION 1 (7 marks) A machine that caps soda bottles was purchased April 1, 2020 for...
QUESTION 1 A machine that caps soda bottles was
purchased April 1, 2020 for $96,000; estimated useful life of 10
years and salvage value of $6,000. It is also estimated that the
machine could cap a total of 360,000 bottles over its entire life.
Calculate depreciation expense under the following independent
assumptions: 1. Straight line depreciation, for the year ended Dec.
31, 2020. 2. Double declining balance depreciation for the year
ended Dec. 31, 2020 and 2021. 3. Units of...
On 1 July 2016, Soff Ltd purchased a 20 per cent shareholding in Willaott Ltd for...
On 1 July 2016, Soff Ltd purchased a 20 per cent shareholding in
Willaott Ltd for a cash consideration of $480 000. On the date of
acquisition, the shareholders’ equity of Willaott Ltd is shown
below: Share capital $1 900 000 Retained earnings $ 500 000 Total
shareholder’s equity $2 400 000 Additional information: For the
year ending 30 June 2017 Willaott Ltd recorded an after-tax profit
of $280 000 and paid a dividend of $60 000 from the profit...
Question 5 (7 marks) (This question is from the Week 10 Tutorial) Big Water Ltd currently...
Question 5 (This question is from the Week 10
Tutorial) Big Water Ltd currently has the following capital
structure: Debt: $4,500,000 paying 9.5% coupon bonds outstanding
with 12 years to maturity, an annual before-tax yield to maturity
of 8% on a new issue. The bonds currently sell for $1,113 per
$1,000 face value. Ordinary Shares: 65,000 shares outstanding
currently selling for $75 per share. The company just paid a $6.50
dividend per share and is experiencing a 6% growth rate...
Question 6 Week 12 (11 marks) On 1 July 2014 Padma Ltd acquires 25 per cent...
Question 6 Week 12 On 1 July 2014 Padma Ltd acquires
25 per cent of the issued capital of Jamuna Ltd for a cash
consideration of $360 000. At the date of acquisition, the
shareholders’ equity of Jamuna Ltd is: Share capital $450 000
Retained earnings $300 000 Total shareholders’ equity 750 000
Additional information • On the date of acquisition, buildings have
a carrying amount in the accounts of Jamuna Ltd of $240 000 and a
market value of...
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