John Owns And Operates A Supermarket In His Community He Supplies You With The Following Details Of Income For The Year 1 (59.04 KiB) Viewed 34 times
John Owns And Operates A Supermarket In His Community He Supplies You With The Following Details Of Income For The Year 2 (17.55 KiB) Viewed 34 times
John owns and operates a supermarket in his community. He supplies you with the following details of income for the year of assessment 2019 Family Super Market $ 5,200,000 Gross Profit Less: Expenses Salaries General Expenses Property tax Water rates Electricity Telephone Depreciation Trade License Donations Penalties and interest Net Profit 448,000 516,000 10,000 36,000 192,000 48,000 36,000 4,000 16,000 5,000 1,311,000 3,889.000 Notes: i. ii. Salaries include $ 150,000 for Ojay's daughter. The commissioner General will regard 50% as commensurate with service rendered by his daughter to the business. General Expenses include $7,000 per week which Mr. Mark charges as his remuneration for serving in the business and $6,000 per week for a domestic helper. The helper works fifty percent of the time in the supermarket. John and his family live in an apartment above the business premises. It is considered that the portions of the expenses applicable to their private use of the premises are: Taxes 1/2 Water rate 2/3 Electricity 1/2 Telephone 1/4 111.
iv. V. Donations were made to: a local football team - $ 4,000 and an approved charitable institution - $12,000 Capital allowance on the assets used in the business amounted to: Annual $25,000 Initial $ 10,000 Required: a. Compute his Income Tax Liability for the year of assessment 2019, writing appropriate note
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!