question archive The following question belongs to the Assessment #2 of FNSACC411 PROCESS BUSINESS TAX REQUIREMENTS of the FNS40217 Certificate IV in Accounting and Bookkeeping
The following question belongs to the Assessment #2 of FNSACC411 PROCESS BUSINESS TAX REQUIREMENTS of the FNS40217 Certificate IV in Accounting and Bookkeeping
Subject:LawPrice: Bought3
The following question belongs to the Assessment #2 of FNSACC411 PROCESS BUSINESS TAX REQUIREMENTS of the FNS40217 Certificate IV in Accounting and Bookkeeping. I really tried very hard to answer it and I could not do it therefore I will appreciate your help
1. XYZ Pty Ltd is a new business and provides you their first-year financial statements for tax calculation.
XYZ Pty Ltd
Profit & Loss Statement
For the year ended 30 June 2019
Sales
$66,000
Less: Expenses
Advertising
$3,000
Entertainment
$1,000
Depreciation
$2,000
Other expenses
$25,000
$31,000
Profit
$35,000
XYZ Pty Ltd Balance Sheet
As at 30 June 2019
Cash at bank
$19,100
Accounts receivable
$10,000
$29,100
Property, plant and equipment - at cost
$10,000
Less: Accumulated depreciation
($2,000)
$8,000
Total assets
$37,100
Amount due to shareholders
$2,000
Net assets
$35,100
Share capital
$100
Current year earnings
$35,000
Total Equity
$35,100
Additional information:
Under taxation legislation, revenue will be taxable when received.
The taxation depreciation for property, plant and equipment is $1,000.
Under taxation legislation, no deduction is allowed for entertainment expenditure.
Required: Calculate how much income tax that XYZ Pty Ltd should pay for the year ended 30 June 2019. Show all the working.
