------------------------------------------------- TAXATION August 2011 Multiple Choice. Identify the letter of the choice that best completes the statement or answers the question. 1. Which of the following is not subject to tax as a corporation? (A) Business partnerships. (B) Insurance companies. (C) Joint stock companies. (D) General professional partnership. 2. A partnership formed by persons for the sole purpose of exercising their common
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Income Tax Ordinance 1947 was subsequently replaced by the Income Tax Act (ITA) 1967‚ came into effect on 1 January 1968. This happen in accordance to the formation of Malaysia in 1963. The Income Tax Act 1967 consolidated the three laws of income taxation existing before
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Lasami Abdullah FIN3403 Homework Chapter 3 Chapter 3 #1-6 & #8-11 1. Division A profit margin = Net Income/Sales = $100‚000/$2‚000‚000 = .0500 = 5% Division B profit margin = Net Income/Sales = $25‚000/$300‚000 = .0833 = 8.3% Based on the return on sales‚ Division B is superior even though they didn’t sell as much in dollars as Division A‚ their profit margin is higher. 2. Database Systems Net Income = Sales * Profit Margin = $1‚200‚000 * 0.06 = $72‚000 Return on Assets (Investment)
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Prentice Hall’s Federal Taxation 2014 Corporations‚ 27e Chapter C12 The Gift Tax 1) The gift tax is a wealth transfer tax that applies to transfers during a person’s lifetime and transfers at death. Answer: FALSE Page Ref.: C:12-2 Objective: 1 2) The annual exclusion permits donors to make gifts of $14‚000 each to multiple donees. Answer: TRUE Page Ref.: C:12-4 Objective: 1 3) Molly sells her car‚ valued at $30‚000‚ to her nephew Todd for $18‚000. Molly has made a taxable gift. Answer:
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2ACCT 455 CHAPTER 2 Solutions 2. Suppose that P.V. Ltd. paid a dividend of $10 at the end of year 1 (any portion of year 1 net income would do). Then‚ its year 2 opening net assets are $276.36‚ and net income would be: P.V. Ltd. Income Statement For Year 2 Accretion of discount (10% × 276.36) P.V.’s balance sheet at time 2 would be: P.V. Ltd. Balance Sheet As at Time 2 $27.64 Financial Asset Cash: (140 + 14 + 150) $304.00 Shareholders’ Equity Opening Balance: 276.36 (286.36 - 10.00 dividend)
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Prentice Hall’s Federal Taxation 2014 Corporations‚ 27e Chapter C3 The Corporate Income Tax 1) A C corporation must use a calendar year as its tax year unless it has a substantial business purpose to use a fiscal year. Answer: FALSE Page Ref.: C:3-2 Objective: 1 2) Corporations are permitted to deduct $3‚000 in net capital losses annually. Answer: FALSE Page Ref.: C:3-7 Objective: 2 3) Organizational expenses incurred after 2004 are amortized over five years. Answer: FALSE Page Ref.:
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11-37 Russell does not have a material participation therefore in 2009; Russell cannot deduct any of the passive loss. The $40‚000 loss incurred in 2009 from the partnership will be suspended and carried forward to 2010 where it offsets the income of $22‚000. After 2010‚ $18‚000 of the 2009 passive loss remains suspended. 11-42 The net passive activity loss will be (40‚000) Activity A……………………………… $ 10‚0000 Activity B……………………………… $(5‚000) Activity C……………………………….$(25‚000) Activity D………………………………
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The significance of taxation. Today‚ the tax subsidy is major feature of the U.S. health care market. Results suggest that the tax subsidy increased the growth of group insurance‚ particularly among union members and employed persons. This is a critical effect because group insurance is not only less expensive than individual insurance‚ but it is also easier to obtain‚ and households with access to group health insurance are far more likely to purchase health insurance coverage than those without
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person’s taxable income.|s. 4-15| 2. The first part of taxable income: assessable income You will find this rule in …| Assessable income is ordinary income|Section 6-5 of the Tax Law says that a person’s assessable income includes all their “ordinary income” derived during the year. |s. 6-5| ||| Plus statutory income|Section 6-10 then says that a person’s assessable income also includes other amounts (that are not ordinary income) but which are
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United International College Hong Kong Taxation Assignment 1 Answer the following questions. 25 marks each. 1. David’s salaries tax for year of assessment 2010/11 were due as follows: 1st instalment $10‚500 due on 2 January 2012 2nd instalment $4‚000 due on 4 April 2012. However David failed to pay the 1st instalment by the end of January 2012. What actions will be taken by Inland Revenue Department to recover the tax from David? Ans. When the tax was overdue after 2
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