Get premium membership and access questions with answers, video lessons as well as revision papers.

Sakata Contractors Ltd. has been in the construction business for many years. The following information relates to one of its construction contracts for the year ended...

      

Sakata Contractors Ltd. has been in the construction business for many years.
The following information relates to one of its construction contracts for the year ended 31 December 2011:
sak12522019936.png

Additional information:
1. Wear and tear allowance is at the rate of 12.5%,
2. The company recognises two thirds of annual profits when they arise
3. Any contract losses are recognised in full in the year of their occurrence

Required
i) Contract profit or loss for the year ended 31 December 2011.
ii) Taxable profit or loss for the year ended 31 December 2011 assuming that there were no other contracts with a significant degree of completion.

  

Answers


Wilfred
sak22522019938.png
Wilfykil answered the question on February 25, 2019 at 05:39


Next: You have been engaged as a tax consultant by Mavuno Bank Ltd. The bank has provided the following details in respect of its operations and...
Previous: Weco Ltd is a company incorporated in Kenya. The company controls 80% of the share capital of Jazi Ltd which is also incorporated in Kenya. The...

View More CPA Advanced Taxation Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions