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- Poland Mining Company Ltd. started prospecting for titanium in Mombasa in year 2011. Expenditure relating to research, testing and winning access to titanium amounted to...(Solved)
Poland Mining Company Ltd. started prospecting for titanium in Mombasa in year 2011. Expenditure relating to research, testing and winning access to titanium amounted to Sh.240 million. The company paid Sh.720 million to the government to acquire rights over the titanium and Sh.210 million for the purchase of land.
The following assets were constructed or purchased during the year 2012:
1. Two graders were purchased at a total cost of Sh.16, 000,000.
2. A forklift was acquired at a cost of Sh.6, 000,000.
3. A store was constructed at a cost of Sh.36, 000,000
4. Office furniture was acquired at a cost of Sh.2, 400,000.
5. Labor quarters were constructed at a cost of Sh.42, 000,000.
6. Ten Lorries (5 tonnes each) were acquired at a total cost of Sh.30, 000,000.
7. Specialized processing machines for mining were acquired at a cost of Sh.960, 000,000.
8. A staff clinic was constructed at a cost of Sh.12, 000,000 .
9. Computers were purchased at a cost of Sh.480, 000.
10. A ship (600 tonnes) was acquired at a cost of Sh.450, 000,000.
11. Three saloon cars for official use were acquired at a total cost of Sh.9, 000,000.
Determine Capital allowances due to Poland Mining Company Ltd. for the two years ended 31 December 2012 and 31 December 2013
Date posted: February 14, 2019. Answers (1)
- Dellite Ltd. is a manufacturing company which commenced business on 1st October 2013 after incurring the following capital expenditureDetermine Capital allowances due to Dellite Ltd. for...(Solved)
Dellite Ltd. is a manufacturing company which commenced business on 1st October 2013 after incurring the following capital expenditure
Determine Capital allowances due to Dellite Ltd. for the year ended 30 September 2014
Date posted: February 14, 2019. Answers (1)
- Maina, Otieno and Korir are in a partnership trading as Moko enterprises and sharing profits and losses in the ratio of 2:2:1 respectively
Determine:
i. Adjusted taxable...(Solved)
Maina, Otieno and Korir are in a partnership trading as Moko enterprises and sharing profits and losses in the ratio of 2:2:1 respectively
The following income statements was prepared by the partnership for the year ended 31 December 2007
Determine:
i. Adjusted taxable profit or loss of the partnership for the year ended 31 December 2007
ii. A schedule showing the taxable income of each partner for the year ended December 2007
Date posted: February 14, 2019. Answers (1)
- List four types of dividend income which are exempted from tax in your country(Solved)
List four types of dividend income which are exempted from tax in your country
Date posted: February 14, 2019. Answers (1)
- Mr. Ayub Simuyu is a senior manager with Lipa Enterprises limited. He is based at the company‘s headquarters in Nairobi
Mr. Ayub Simuyu has provided the...(Solved)
Mr. Ayub Simuyu is a senior manager with Lipa Enterprises limited. He is based at the company‘s headquarters in Nairobi
Mr. Ayub Simuyu has provided the following information on his employment and other income for the year ended 31 December 2007
Determine:
i. Taxable income of Mr. Mr. Ayub Simuyu for the year ended 31 December 2007
ii. Tax payable on the income computed in (i) above
Date posted: February 14, 2019. Answers (1)
- Basuba Estate Management Company (BEMC) limited manages rental properties on behalf of its clients (landlords).
The company also carries on the business of cleaning properties for...(Solved)
Basuba Estate Management Company (BEMC) limited manages rental properties on behalf of its clients (landlords).
The company also carries on the business of cleaning properties for other owners at a fee. In additions, the company has invested in shares and fixed deposit accounts with banks.
The following details were extracted from the records of the company for the year ended 31 December 2007:
Determine:
i. Taxable profit or loss of BEMC limited for the year ended 31 December 2007
ii. Tax liability (if any) accruing from the profit or loss computed in (i) above
iii. State the dates when the company would be required to pay the tax liability (or claim a refund)
Date posted: February 14, 2019. Answers (1)
- With respect to repayment of installment tax, distinguish between agricultural and non- agricultural entities(Solved)
With respect to repayment of installment tax, distinguish between agricultural and non- agricultural entities
Date posted: February 14, 2019. Answers (1)
- Mr. Ben Chuma was employed by Mwanzo Limited as human resource director with effect from 1 January 2007
Determine:
i) Taxable incomes of Mr. and Mrs. Chuma...(Solved)
Mr. Ben Chuma was employed by Mwanzo Limited as human resource director with effect from 1 January 2007
Determine:
i) Taxable incomes of Mr. and Mrs. Chuma for the year ended 31 December 2007
ii) Tax liability (liabilities) accruing from the incomes computed in (i) above
Date posted: February 14, 2019. Answers (1)
- The revenue authority may send its officers to employers‘ paying points to check the operations of the pay as you earn (PAYE) system
Outline the key...(Solved)
The revenue authority may send its officers to employers‘ paying points to check the operations of the pay as you earn (PAYE) system
Outline the key areas that officers should include in the audit procedures on the operations of PAYE system
Date posted: February 14, 2019. Answers (1)
- Bora Limited presented the following trading profit and loss account for the year ended 31 December 2007
Determine:
i) Adjusted taxable profit or loss of Bora Limited...(Solved)
Bora Limited presented the following trading profit and loss account for the year ended 31 December 2007
Determine:
i) Adjusted taxable profit or loss of Bora Limited for the year ended 31 December 2007
ii) Tax liability (if any) arising from the profit or loss accounted in (i) above
Date posted: February 14, 2019. Answers (1)
- Outline each of the following
i) Instruments subject to stamp duty
ii) Commissioner‘s power to dispose off abandoned goods under the customs and Exercise Act(Solved)
Outline each of the following
i) Instruments subject to stamp duty
ii) Commissioner‘s power to dispose off abandoned goods under the customs and Exercise Act
Date posted: February 14, 2019. Answers (1)
- The following information relate to the income received by Faida Limited for the year ended 31 December 2008:
For the year ended 31 December 2008, determine...(Solved)
The following information relate to the income received by Faida Limited for the year ended 31 December 2008:
For the year ended 31 December 2008, determine for Faida limited
i) Taxable profit or loss
ii) Tax liability (if any)
iii) Installment tax due and the dates of payment
Date posted: February 14, 2019. Answers (1)
- The following statement of comprehensive income was prepared by Daura pharmaceuticals limited for the year ended 31 December 2008:
Determine:
a) Taxable profit of Duara Pharmaceutical limited...(Solved)
The following statement of comprehensive income was prepared by Daura pharmaceuticals limited for the year ended 31 December 2008:
Determine:
a) Taxable profit of Daura Pharmaceutical limited for the year ended 31 December 2008
b) Tax liability (if any) for the company
Date posted: February 14, 2019. Answers (1)
- Explain how tax policy can be used to promote the growth of small and medium size enterprises (SME‘s) in your country(Solved)
Explain how tax policy can be used to promote the growth of small and medium size enterprises (SME‘s) in your country
Date posted: February 14, 2019. Answers (1)
- Jostina and Maweu are partners running a hardware business based in Nanyuki town. They have approached you to assist them prepare the partnership returns for...(Solved)
Jostina and Maweu are partners running a hardware business based in Nanyuki town. They have approached you to assist them prepare the partnership returns for the year ended 31 December 2008. The following information has been presented to you
Determine:
a) Taxable profit or loss of the partnership for the year ended 31 December 2008
b) A schedule showing the allocation of taxable income / loss to partners
Date posted: February 14, 2019. Answers (1)
- Mr. Casper Amuto is employed as a finance director by Damida Limited. He controls 20% of the company‘s voting share capital.
He reported the following details...(Solved)
Mr. Casper Amuto is employed as a finance director by Damida Limited. He controls 20% of the company‘s voting share capital.
He reported the following details on his income and that of his wife for the year ended 31 December 2008:
Determine:
a) Taxable incomes of Mr. Casper Amuto and his wife
b) Tax due on the incomes computed in (a) above
Date posted: February 14, 2019. Answers (1)
- The management of Haraka Company Ltd has not been maintaining proper books of account. You have been engaged by the management at a fee of...(Solved)
The management of Haraka Company Ltd has not been maintaining proper books of account. You have been engaged by the management at a fee of Sh1,500,000 to ascertain the company's tax position. The following information has been availed to you for the year ended 31 December 2008:
Determine:
(a) Taxable profit of Haraka Company Ltd. for the year ended 31 December 2008.
(b) Tax liability accruing from the profit computed In (a) above.
(c) Assuming that the company's tax liability in year 2007 was Sh.300,000, show how and when tax computed in (b) above would be paid.
Date posted: February 14, 2019. Answers (1)
- Joma, Sego and Kali are partners operating under the name Joseka Enterprises. They share profits and losses in the ratio of 3:1:1 for Joma, Sego...(Solved)
Joma, Sego and Kali are partners operating under the name Joseka Enterprises. They share profits and losses in the ratio of 3:1:1 for Joma, Sego and Kali respectively.
The business started operations on I January 2009 by purchasing a go-down constructed in 1960 for Sh.2,000,000 and renovating it at a cost of Sh.3,600,000 for use as a factory. The purchase cost of the go-down included the cost of land amounting to Sh.1,000,000. One third of the renovated factory area is used as a warehouse for raw materials and finished goods.
The following additional assets were acquired before commencement of operations:
Determine, for the year ended 31 December 2009:
(i) The adjusted taxable profit for the partnership.
(ii) The taxable income for each of the partners
Date posted: February 14, 2019. Answers (1)
- Explain the following:
(b) Concept of residence for incorporated entities.
(c) Deductions allowed against rental income(Solved)
Explain the following:
(b) Concept of residence for incorporated entities.
(c) Deductions allowed against rental income
Date posted: February 13, 2019. Answers (1)
- Companies undergoing the process of liquidation are required to address a number of issues, one of which concerns taxation of the income received by the...(Solved)
Companies undergoing the process of liquidation are required to address a number of issues, one of which concerns taxation of the income received by the company or distributed to shareholders as dividend.
In the context of the above statement, briefly explain the taxation of the following:
i) Income received by company under liquidation.
ii) Dividend distributed to shareholders during the process of liquidation.
Date posted: February 13, 2019. Answers (1)