ZuoTi.Pro
Question

Jane wrote a book for which she received Royalty income in 2016. The following breakdown is...

Jane wrote a book for which she received Royalty income in 2016. The following breakdown is as follows:

Royalty Income - S$52,520   
Related Expenses Incurred - NIL
Printing and Stationary - S$15,500 Advertisement and Publicity - S$8,600
Legal Fees - S$2,480

Compute Jane's tax liabilities for the Royalty income. (8 marks)
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Royalty Income $52,520.00
Less: Printing $15,500.00
Less Advertisement 8600
Less: Legal fees 2480
Taxable royalty income $25,940.00
10% of Gross Royalty Income ($52,520 x 10%) $5,252.00
Taxed on the lower of:
Amount of royalties after allowable deductions; or $25,940.00
or
10% of the gross royalties. $5,252.00
Jane's tax liabilities for the Royalty income $5,252.00
0 0
Add a comment
Know the answer?
Add Answer to:
Jane wrote a book for which she received Royalty income in 2016. The following breakdown is...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Accountancy

    Mr. Bike is the long time proprietor of an unincorporated business he calls “Get with Bike” that sells and repairs bicycles. Since his children have moved out, his spouse has been a little cranky and feels she needs to change gears. She would like to be more involved in the business and feels that she can do a better job to inflate the profits of the business, starting with the next business cycle.Mr. Bike, being older than his spouse, has...

  • income tax

    Angie's Amazing Getups Incorporated is a Canadian controlled private corporation with a head office in London, Ontario. The company is a manufacturer of high end custom costumes and makeup used in movie and theatre productions with sales in Canada and the U.S.The company started in business in 2015 when the sole shareholder, Angela Q. Snodgrass, was photographed by the paparazzi after a particularly enthusiastic night of partying. When Angela saw herself on the front page of every tabloid newspaper the...

  • For the following transactions, identify which principle, constraint, or assumption would apply: Assume a partnership’s business...

    For the following transactions, identify which principle, constraint, or assumption would apply: Assume a partnership’s business is going to continue indefinitely. Based upon the dollar amount of cash paid or received, transactions are recorded. An accountant may ignore expense accounts with low dollar balances when deciding which expense accounts, they may want to increase spending on. Benefits of a new software system should be greater than the costs to implement the new software system. Business owners should keep their personal...

  • unadjusted, adjusted , all the sheet need to fill out 5. Award: 17.50 points GL0303 -...

    unadjusted, adjusted , all the sheet need to fill out 5. Award: 17.50 points GL0303 - Extension of Problem 2-1A LO P1, P2, P3, P4, P5, P6 Mike Sweet opened a web consulting business called Sweet Homes and recorded the following transactions in its first month of operations Apr. 1 Sweet invest $2.000 cash along with office equipment valued at $35,500 in the company in exchange for common stock Apr. 2 The company prepaid $11.400 cash for telve months' rent...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT