Case Study-AW220

Case Study-AW220 Online Services

 

Companies
 
Exercise 1
 
Jade Tower Ltd (JTL) imports and distributes Chinese medicinal ingredients. It is not a qualifying company and has a 31 March balance date. For the 2012 income tax year, (i.e. year ended 31 March 2012) the company had a closing credit balance for its imputation credit account of $8,699.48. During the 2013 income tax year, (i.e. year ending 31 March 2013), JTL receives and pays the following amounts
 

  • 5th June 2012: paid a net dividend to its shareholders of $49,998 with imputation credits attached at a ratio of 28/72 and RWT was deducted at the appropriate rate;
  • 30 June 2012 received a Gross dividend of $21,000 with 28% imputation;
  •  

  • 30 July 2011: paid $2,840.89 in GST;
  • 28 August 2012: paid $25,336 in provisional tax;
  •  

  • 31 March 2013: received gross interest of 1,073.75 on the maturity or a term deposit with RWT of $300.65 deducted at source;
  • 5 August 2012 paid $303.99 in late payment penalties and use of money interest;
  •  

  • 7 April 2012: paid $75,080 of 2011 terminal tax;
  • 15 January 2013: paid $25,336 in provisional tax; and
  •  

  • 5 March 2013: paid $32,000 in provisional tax.

 

There have been no shareholding changes over the period. Prepare the imputation credit account balance as at 31 March 2013 using the ‘T’ format.

 

 

Dapa Consulting Limited
Profit & Loss Account for the year ended 31 March 2013
Notes
Income
Gross Interest 1 2,000.00
Professional fees 250,000.00
Gross Dividends 2 750.00
Gross Income 252,750.00
Expenses  
Accounting Fees 2,704.00
Advertising 6,230.00
Bank Charges 1,297.00
Donations 3 300.00
Entertainment 4 3,998.00
Legal Fees 5 4,000.00
Lighting and Heating 2,368.00
Motor Vehicle Expenses 3,000.00
Printing, Postage and Stationery 7,056.00
Rent 24,000.00
Salaries and Wages 6 45,000.00
Shareholder Salaries 6 65,000.00
Speeding Fines 7 120.00
Use of Money Interest 274.00
Accounting depreciation 8 2,567.00
Total Expenses 167,914.00
Accounting Net Profit Before Tax 84,836.00

 
You can read more about our case study assignment help services here.
 

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention Case Id mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with Case Id in the email body. Case Id is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to Case Id . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Case Approach

Scientific Methodology

We use best scientific approach to solve case study as recommended and designed by best professors and experts in the World. The approach followed by our experts are given below:

Defining Problem

The first step in solving any case study analysis is to define its problem carefully. In order to do this step, our experts read the case two three times so as to define problem carefully and accurately. This step acts as a base and help in building the structure in next steps.

Structure Definition

The second step is to define structure to solve the case. Different cases has different requirements and so as the structure. Our experts understand this and follow student;s university guidelines to come out with best structure so that student will receive best mark for the same.

Research and Analysis

This is the most important step which actually defines the strength of any case analysis. In order to provide best case analysis, our experts not only refer case materials but also outside materials if required to come out with best analysis for the case.

Conclusion & Recommendations

A weak conclusion or recommendations spoil the entire case analysis. Our expert know this and always provide good chunks of volume for this part so that instructors will see the effort put by students in arriving at solution so as to provide best mark.

Related Services


 

 

Notes
 

  • No RWT was deducted from this amount.
  • Gross dividends were received as follows
  •  

  • ABC Ltd $600 gross (IC $168 and RWT $30)
  • Telecom $150 gross (imputation credits attached of $42, RWT deducted of $7.50)
  •  

  • Donations were paid to the World Vision.
  • Entertainment expenditure relates solely to lunch and internal meetings with clients.
  •  

  • Legal fees were for securing a lease of the current office for next year.
  • PAYE was correctly deducted from all salaries and wages paid during the 2013 income year.
  •  

  • Speeding fines were incurred by Tom who received these on his way home from work.
  • Accounting depreciation is calculated using the depreciation rates as specified by IRD.
  •  

  • Shareholders’ current account: Tom Da $11,695 (Cr), Ken Pa $8,073 (Cr).
  • Provision for Holiday Pay yearend balance $4,000 (Cr).
  •  

  • The company has a loss brought forward of $12,000 from the 2012 tax year.
  • The 2012 holiday pay accrual was $2500. The 2013 holiday pay accrual was $4000.

 

Required

 

  1. Prepare a tax computation for the company for the year ended 31 March 2013 (The computation should start with the accounting profit, include relevant tax adjustments, and end with taxable income)
  2. Calculate the income tax liability of the company as of 03.2013

Product code: Case Study-AW220

 
Looking for best Case Study-AW220 online ,please click here
 

 

Summary