Explain the tax implications of the â??most favoured nation statusâ?. (4 marks)(b) You have been ap

Explain the tax implications of the “most favoured nation statusâ€. (4 marks)(b) You have been approached by Mr. Kenneth Kamau, seeking your assistance in the computation of his tax liability for the year ended 31 December 2001. he has provided you with the following information:Mr. Kamau works for Chip.com Ltd. as the technical director. During the year ended 31 December 2001, he received the following emoluments:1.A salary of Sh.600,000 per month2.Dividends amounting to Sh.360,000 (gross). He holds 30% of the shares in the company.3.He is housed by the company in a house whose market rental value is Sh.180,000 per month. The employer has rented the house from an estate agent.4.He receives director’s fees amounting to Sh.90,000 per month.5.He has free use of a company vehicle since at times he works late. The vehicle, with an engine capacity of 2200cc had cost Sh.3,600,000 in the year 2000.6.On 1 January 2001, Mr. Kamau obtained a loan of Sh.10,000,000 from the company at an interest rate of 5% per annum repayable in 10 years.7.Mr. Kamau has a small scale horticultural farm in Nanyuki. The profits/losses from the farm for the last three years were as follows:Year ended 31 December 1999 –Year ended 31 December 2000 –Year ended 31 December 2001 –In each of the three years, the family consume vegetables from the farm valued at kshs. 75,000 and converted into their own use flowers valued at Kshs. 130,000Loss sh.960,000Profit sh.120,000Profit Sh.450,00o8.Mrs. Kamau is a nurse and is employed by Chip.com Ltd. at a salary of Sh.85,000 per month (PAYE deducted per month is Sh.20,000).Mrs. Kamau also owns rental premises in Nakuru. The following were the details of income and expenses for the year of income 2001:Gross rentLess: Caretaker’s salary Painting Repairs Interest on Mortgage Renovations after which rent was increased Net income Sh.1,120,000 (300,000) (20,000) (60,000) (240,000) (400,000) 100,0009.Mrs. Kamau is a member of a registered Individual Retirement Benefits Scheme managed by the Insurance Company of Africa. She contributes sh.20,000 every month towards the scheme.Required:Compute the taxable income for Mr. Kamau for the year ended 31 December 2001. ( 8 marks)Determine tax payable and specify when it is to be paid. ( 2 marks)Is Mr. Kamau to blame for the PAYE not deducted from his emoluments? Briefly explain. ( 1 mark)Assuming that the market rate of interest for January 2001 was 10% per annum. Compute the fringe benefit tax (FBT) payable on Mr. Kamau’s loan. When would the FBT be paid to the Commissioner of Income Tax? ( 3 marks)Comment on the tax implications of Mrs. Kamau’s contributions to an Individual Retirement Benefit Scheme. ( 2 marks)(Total: 20 marks)

 

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Unconditional promises to give (pledges) of nongovernmental voluntary health and welfare…

Unconditional promises to give (pledges) of nongovernmental voluntary health and welfare organizations are recognized as revenue and support in the period in which:

a The pledges are received

b Cash is received from the pledges

c All restrictions on pledged resources have been removed

d Pledged resources are expended

 

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As of January 1, 2015, information related to the defined benefit pension plan of Leffingwell…

As of January 1, 2015, information related to the defined benefit pension plan of Leffingwell Company was as follows: PBO . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . $1,615,000 Fair value of pension assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,513,500 Prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,000 Deferred net pension gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 Pension data for the years 2015 and 2016 are listed as follows: 2015 Pension plan information: Service cost as reported by actuaries . . . . . . . . . . . . . . . . . . . . . . . . . $87,000 Contributions to pension plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120,000 Benefits paid to retirees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $132,000 Actual return on pension plan assets . . . . . . . . . . . . . . . . . . . . . . . . . $26,350 Amortization of prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,000 Actuarial change increasing PBO . . . . . . . . . . . . . . . . . . . . . . . . . . . $80,000 Obligation discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 11% Long-term expected rate of return on pension plan assets . . . . . . . . . . . . 10% 2016 Pension plan information: Service cost as reported by actu

 

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The ultimate aim of governmental and not-for-pro?t organizations is to produce outcomes. Yet in…

The ultimate aim of governmental and not-for-profit organizations is to produce outcomes. Yet in preparing program budgets, many organizations link expenditures to outputs rather than outcomes. Why?View Solution:
The ultimate aim of governmental and not for pro t organizations is to

 

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Item2 Check my work Check My Work button is now enabled1Item 2 Item 2 The condensed form of Nordstro

Item2 Check my work Check My Work button is now enabled1Item 2 Item 2 The condensed form of Nordstrop Company’s flexible budget for manufacturing overhead follows: Cost Machine-Hours Formula Overhead Costs (per machine-hour) 5,000 6,000 7,000 Variable cost $ 1.70 $ 8,500 $ 10,200 $ 11,900 Fixed cost 13,500 13,500 13,500 Total overhead cost $ 22,000 $ 23,700 $ 25,400 The following information is available for a recent period: The denominator activity of 5,000 machine-hours was chosen to compute the predetermined overhead rate. At the 5,000 standard machine-hours level of activity, the company should produce 1,000 units of product. The company’s actual operating results were as follows: Number of units produced 1,300 Actual machine-hours 9,200 Actual variable overhead costs $ 14,260 Actual fixed overhead costs $ 18,000 Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) 2. What were the standard hours allowed for the year’s actual output? (Do not round intermediate calculations.) 3. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances. (Do not round intermediate calculations. Round your answers to 2 decimal places. Indicate the effect of each variance by selecting “F” for favourable, “U” for unfavourable, and “None” for no effect (i.e., zero variance).)

 

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Matching Fund Types with Fund Categories. For each of the following fund types, indicate its fund ca

     Matching Fund Types with Fund Categories. For each of the following fund types, indicate its fund category by placing either “GF” for governmental funds, “PF” for proprietary funds, or “FF” for fiduciary funds in the space provided before each item.

Fund Type

______ Agency fund

______ Permanent fund

______ Debt service fund

______ Internal service fund

______ Pension (and other employee benefit) trust fund

______ Special revenue fund

Page 65______ Enterprise fund

______ General Fund

______ Investment trust fund

______ Capital projects fund

______ Private-purpose trust fund

 

I need this finished as soon as possible please

Title it Matching Funds

 

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What information is conveyed by the budgetary fund balance account? View Solution: What information.

What information is conveyed by the budgetary fund balance account? View Solution:
What information is conveyed by the budgetary fund balance account

 

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(Budget summary) Using your answers from the preceding problem and the following information,…

(Budget summary) Using your answers from the preceding problem and the following information, prepare a budget summary for the General Fund of Jeter Village for fiscal year 2013. Assume that the fund balance at the beginning of 2013 is $2,607,241. 1. The Village has three departments: Public Safety, Administration, Streets and Parkways. 2. Budgeted appropriations for the three departments for fiscal year 2013 are as follows:

3. Budgeted nondepartmental items include a $1 million transfer to the Debt Service Fund and a $50,000 transfer to the Derek Park Fund.

 

 

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What is the difference between an enterprise fund and an internal service fund? View Solution: What.

What is the difference between an enterprise fund and an internal service fund? View Solution:
What is the difference between an enterprise fund and an

 

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Enterprise & Entrepreneuralism ‘Bridgetown Newsagents’ – A Small Business Case Study Managem

Enterprise & Entrepreneuralism

'Bridgetown Newsagents' – A Small Business Case Study

Management styles

Key Issues

Market Research 

 

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