2. Paul Gardner is 65 year old pensioner and operates a Sports Bar with gross receipts for 2020 of $60,000,000, purchases of $35,000,000, operating expenses of $4,500,000, wages and salaries of $6,500,000 and capital allowances of $2,000,000. He also had interest income of $2,500,000. Mr. Gardner receives pension income of $3,200,000 from Victoria Mutual Pension Scheme. Required: Calculate his income tax liability and statutory deductions for 2020.

2. Paul Gardner is 65 year old pensioner and operates a Sports Bar with gross receipts for 2020 of $60,000,000, purchases of $35,000,000, operating expenses of $4,500,000, wages and salaries of $6,500,000 and capital allowances of $2,000,000. He also had interest income of $2,500,000. Mr. Gardner receives pension income of $3,200,000 from Victoria Mutual Pension Scheme. Required: Calculate his income tax liability and statutory deductions for 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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