taxation
The company, North S.L., has the following information in the Balance Sheet and Profit and Loss Account for 2016, before calculating its Corporate Tax:
BALANCE SHEET | ||
ASSETS | LIABILITIES | |
69.360,00 A) NON CURRENT ASSET | A) NET EQUITY | 105.130,00 |
4.860,00 1. Intangible asset | A-1) Equity | 60.000,00 |
4.860,00 1. R+D | 1. Capital | 60.000,00 |
4.860,00 201 DEVELOPMENT | 1. Issued capital | 60.000,00 |
64.500,00 II. Tangible Fixed Assets | 100 SOCIAL CAPITAL | 19.500,00 |
64.500,00 2. Technical facilities and others. | III. Funds | 12.000,00 |
52.000,00 213 MACHINERY | 1. Legal y statuary | 12.000,00 |
8.000,00 216 FURNITURE | 112 LEGAL FUNDS | 7.500,00 |
3.500,00 217 INFORMATION PROCESSING EQUIP. | 2. Other funds | 7.500,00 |
25.000,00 218 TRANSPORT | 113 VOLUNTEER FUND | 25.630,00 |
-24.000,00 281 CUMULATIVE DEPRECIATION | VII. Result of the fiscal year | 32.000,00 |
104.050,00 B) CURRENT ASSET | B) NON-CURRENT LIABILITY | 32.000,00 |
20.500,00 II. Stock | II. Long-term debts | 32.000,00 |
20.500,00 1. Commercial | 5. Other financial liabilities | 32.000,00 |
20.500,00 300 GOODS | 171 LONG-TERM DEBTS | 36.280,00 |
16.250,00 III. Debtors | C) CURRENT LIABILITY | 6.100,00 |
11.850,00 1. Clients (sales and services) | III. Short-term debts | 6.100,00 |
11.850,00 b) Clients (sales and services) short-term | 5. Other financial liabilities | 6.100,00 |
14.300,00 430 CLIENTS | 523 SUPPLIERS | 30.180,00 |
1.800,00 431 CLIENTS, COMMERCIAL PURPOSE | V. Creditors | 11.200,00 |
-4.250,00 490 VALUE IMPAIRMENT | 1. Suppliers | 11.200,00 |
4.400,00 6. Other credits with Public Adminis. | b) Short-term suppliers | 11.200,00 |
4.400,00 473 PUBLIC FINANCES, WITHOLDINGS | 400 SUPPLIERS | 18.980,00 |
67.300,00 VII. Cash | 3. Different Creditors | 18.980,00 |
67.300,00 1. Treasury | 410 Creditors | 105.130,00 |
2.200,00 570 CASH FLOW, EUROS | ||
65.100,00 572 BANKS AND CREDIT INSTITUTIONS | ||
173.410,00 T OTAL ASSETS | TOTAL NET EQUITY AND LIABILITIES 173.410,00 | |
LOSS AND PROFIT ACCOUNT | |
1. Net revenue | 204.300,00 |
700 SALES OF GOODS | 200.000,00 |
705 PROVISION OF SERVICES | 5.500,00 |
708 SALES RETURNS | -1.200,00 |
4. Supplies | -69.800,00 |
600 PURCHASE OF GOODS | -72.450,00 |
610 CHANGE IN INVENTORY | 2.650,00 |
6. Staff costs | -75.170,00 |
640 WAGES AND SALARIES | -56.800,00 |
642 SOCIAL SECURITY | -16.470,00 |
649 OTHER SOCIAL EXPENSES | -1.900,00 |
7. Other operating costs | -19.850,00 |
626 BANK SERVICES | -700,00 |
627 ADVERTISING AND PR | -3.600,00 |
628 SUPPLIES | -3.800,00 |
629 OTHER SERVICES | -7.100,00 |
631 OTHER TAXES | -400,00 |
694 IMPAIRMENT LOSSES | -4.250,00 |
8. Depreciation | - 13.950,00 |
681 DEPRECIATION | - 13.950,00 |
12. Other outcomes | - 600,00 |
678 EXTRA COSTS | - 600,00 |
A) ACTIVITY OUTCOME | 24.930,00 |
13. Financial income | 700,00 |
b) Other financial income | 700,00 |
769 OTHER FINANCIAL INCOME | 700,00 |
B) FINANCIAL OUTCOME | 700,00 |
C) INCOME BEFORE TAXES | 25.630,00 |
D) FISCAL YEAR OUTCOME | 25.630,00 |
1. Make in each of the following points the adjustment needed to obtain the tax base of the Corporate Tax, basing the response and establishing the amount that corresponds. You must also indicate if you are facing a temporary or permanent difference. In points 8 and 9 you should not propose any adjustment, in these two cases you should describe how they affect the liquidation of the Corporate Tax.
The machinery was acquired for € 52,000 in January 2014. An accounting depreciation expense of € 7,000 is provided. Fiscally a maximum amortisation coefficient of 12% and a maximum period of 18 years is established.
The transport element or vehicle was acquired on January 1, 2013, with a price of € 25,000 and a useful life of 5 years. The accounting amortisation is carried out using the method of decreasing digit numbers.
4. Provision of € 1,250 is provided for a debt that occurs on October 1, 2016. The liability has not been claimed judicially.
5. A provision for insolvencies of € 3,000 is provided, an obligation that has already been judicially claimed.
6. The administrators have been paid for the performance of senior management functions with € 10,000.
7. An administrative penalty of € 600 has been imposed on the company.
8. The company has paid the posters for a sports conference for its employees. This serves to advertise their products and services and has cost € 1,200. The company gave the customers who attended the event a batch of products worth € 2,200. Extraordinarily, he has given his employees an assortment of products worth € 400.
9. The company is entitled to a deduction for having made investments affected to R & D of € 1,200.
10. The company has made instalment payments of € 4,400.
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
"We provide you with the balance sheet of a Spanish company at the end of the...
"We provide you with the balance sheet of a Spanish company at the end of the year. The company carried out its accounting according to the PGC 2007. Create the closing entry for the company." Need help with the closing entry. ASSETS LIABILITIES Non-current assets Net equity Intangible fixed assets: Equity capital: Industrial Propriety 40.500 € Capital Social 3.000.000 € Cumulative depreciation II -5.000 € Legal reserve 348.180 € Tangible fixed assets: Profit and Loss 158.810 € Constructions 3.900.000 €...
NewCat Ltd, a manufacturer and retailer for pet products, commenced operations on 1 July, 2018 by issuing 100 000 $2.00 shares, payable in full on application. There were no share issue costs For...
NewCat Ltd, a manufacturer and retailer for pet products, commenced operations on 1 July, 2018 by issuing 100 000 $2.00 shares, payable in full on application. There were no share issue costs For the year ending 30 June 2019, the company recorded the following aggregate transactions S'000 4 265 1 800 723 285 130 95 212 210 120 Accounts les Cost of sales Other income Administration charges Selling and distribution expenses Employee entitlement expenses - (selling) Wages and salaries -...
Match each of the descriptions with the term or phrase it best reflects Description 1. An...
Match each of the descriptions with the term or phrase it best reflects Description 1. An assessment of whether financial statements follow GAAP 2. Amount a business earns in excess of all expenses and costs associated with its sales and revenues. 3. A group that sets accounting principles in the United States 4. Accounting professionals who provide services to many clients | 5. Principles that determine whether an action is right or wrong. mework 1 Consider the following separate situations,...
Taxation
ToberRing, Inc is a U.S. retailer that uses the accrual method. They reported the following financial accounting operating results on their GAAP financials:BookAdjustmentsTax ReturnSales1,550,000Cost of goods sold(650,000)Dividend from a 40% owned corporation205,000Net long-term capital gains50,000Short term capital losses(55,000)Interest from State of Oklahoma bonds50,000Interest from Corporate Bonds25,000Total incomeSalaries and wages520,000Repairs25,000Bad debts10,000Advertising20,000Depreciation80,000Charitable Contributions85,000Meals15,000Total expensesBook income before taxesTax Expense per booksNet Income per booksConsider the following:MACRS depreciation was $65,400They actually wrote off $9,000 in bad debtsSee the next page for the Tax Return Final...
Accounting
We are providing you with the balance sheet of a Spanish company at the end of the year. The company carried out its accounting according to the PGC 2007. You have to analyse each of the items and specify which group of the Chart of Accounts they belong to and the specific coding that corresponds to it according to the Chart of Accounts of the General Accounting Plan to each entry.Once all the accounts have been coded, create the closing...
Question 2 (30 marks) At 30 June 2018, Spencer Ltd had the following temporary differences: Asset or liability Carrying amount ($000) Tax base ($000) Computers at cost 300 300 Accu...
Question 2 (30 marks) At 30 June 2018, Spencer Ltd had the following temporary differences: Asset or liability Carrying amount ($000) Tax base ($000) Computers at cost 300 300 Accumulated depreciation (60) (100) Computers (net) 240 200 Accounts receivable 100 100 Allowance for doubtful debts (10) 0 Accounts receivable (net) 90 100 Provision for warranty costs 30 0 Provision for employee benefits (LSL) 20 0 The following information is available for the year ending 30 June 2019. Statement of comprehensive...
The draft statement of profit or loss of Event Light Ltd for the year ended 30...
The draft statement of profit or loss of Event Light Ltd for the year ended 30 June 2020 showed a profit before tax of $25 240, included the following items of income and expense: Government grant (exempt from tax) Proceeds on sale of plant Carrying amount of plant sold Impairment of goodwill Bad debts expense Depreciation expense – plant Insurance expense Long-service leave expense 6 000 23 000 20 000 11 100 8 100 14 000 12 900 14 500...
can you please give feed back to this.. like add something or give a comment about...
can you please give feed back to this.. like add something or give a comment about the following posts. 1) Profit Margin = NetincomeSales Profit margin is very useful in analyzing the financial health of the firm because it indicates how much money is generated per every dollar in sales. A higher profit margin means there are low expense ratios relative to sales. In other words, it tells us how a company uses its income. When a company has a...
Accounting for income tax Tulip Ltd commenced business on 1 July 2018, with share capital of...
Accounting for income tax Tulip Ltd commenced business on 1 July 2018, with share capital of $700,000. The following information is available for the year ended 30 June 2019: Calculation of profit for the year ended 30 June 2019 $ $ Income: Revenue 1 430 000 Royalty (exempt from income tax) 10 000 Expenses: Cost of sales 725 000 Advertising expense 204 000 Annual leave expense 24 000 Depreciation – equipment 35 000 Depreciation – motor vehicles 20 000 Doubtful...
Net income before taxation is $67,450. A number of items in the profit and loss account...
Net income before taxation is $67,450. A number of items in the profit and loss account have to be treated differently for tax purposes. Accounting Records Taxation Records Interest income earned but not yet received 27,000 NIL Impairment of goodwill 45,000 NIL Transfer to long service leave provision 24,000 NIL Depreciation of machinery 60,000 45,000 Transfer to allowance for doubtful debts 291,000 279,000 An extract from the balance sheet at balance day reveals: Assets Carrying Amount Tax Base Plant and...
NewCat Ltd, a manufacturer and retailer for pet products, commenced operations on 1 July, 2018 by issuing 100 000 $2.00 shares, payable in full on application. There were no share issue costs For the year ending 30 June 2019, the company recorded the following aggregate transactions S'000 4 265 1 800 723 285 130 95 212 210 120 Accounts les Cost of sales Other income Administration charges Selling and distribution expenses Employee entitlement expenses - (selling) Wages and salaries -...
Match each of the descriptions with the term or phrase it best reflects Description 1. An assessment of whether financial statements follow GAAP 2. Amount a business earns in excess of all expenses and costs associated with its sales and revenues. 3. A group that sets accounting principles in the United States 4. Accounting professionals who provide services to many clients | 5. Principles that determine whether an action is right or wrong. mework 1 Consider the following separate situations,...
Most questions answered within 3 hours.
-
She estimates the following model as Rent = β0 + β1 Bedroom + β2
Bath +...
asked 15 minutes ago -
Prove that the following is a valid cumulative distribution
function
F(x) = x/(1+x) for a>=0
0...
asked 45 minutes ago -
Sal's satellite company broadcasts TV to subscribers in Los
Angeles and New York. The demand functions...
asked 6 minutes ago -
1. Sketch the expected Mass Spectrum of Pentane (C5H12)
2. Draw the most stable Newman projection...
asked 42 minutes ago -
Russel Wisselink “Have a plan ready for me by 9:00 a.m. tomorrow
morning” was the instruction...
asked 10 minutes ago -
Write the balanced chemical equation for the reaction between
iodate and bisulfite. Does the order with...
asked 32 minutes ago -
how can you efficiently determine the number of atoms
in a sample of an element?
asked 18 minutes ago -
Calcium dihydrogen phosphate, Ca(H2PO4)2, and sodium hydrogen
carbonate, NaHCO3, are ingredients of baking powder that react...
asked 23 minutes ago -
a car starts from rest at a stop sign. It accelerates
at 4.4m/s² for 7.5s, coasts...
asked 38 minutes ago -
can you identify some rules of how R is calculated for a circuit
in series? For...
asked 30 minutes ago -
Design and implement your own linked list class to hold a sorted
list of integers in...
asked 38 minutes ago -
Swissie Triangular Arbitrage. The following exchange rates are
available to you. (You can buy or sell...
asked 37 minutes ago