Mr Reddy and Mrs Reddy are both under 65 and married out of community ofproperty. The following information is provided for the year ended 28 February2018: R Mr Reddy's salary 220 000 Mrs Reddy's net income from a business sheconducts as a sole proprietor 80 000 Dividends from South African listed shares (Mr Reddy) 4000 Interest on savings account (Mr Reddy) 16 000 Interest onsavings account (Mrs Reddy) 20 000 Mr Reddy paid the following amounts duringthe year: Pension fund contributions 8 000 Retirement annuity fund contributions1 600 Mrs Reddy paid RAF contributions of 9 000 Required: Calculate (in full) thetax payable by Mr and Mrs Reddy for the tax year of assessment ending 28February 2018. Show all calculations.

To calculate the tax payable by Mr. and Mrs. Reddy for the tax year of assessment ending on 28…

Answered: Mr Reddy and Mrs Reddy are both under…

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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Paul is an employee, but also has a small business. For the year ended 31st March 2024 his sales were £2, 500 and his running expenses were £460. He also bought a second-hand computer for use in his business for £200. His taxable trading income for the year will be: Question 14Select one: a. £2,500 b. £2, 040 c. £1,840 d. £1,500
Chris 45 and Alison 46 are marries and they will file a joint return . During the year they earned 82500 wages. They also jad investment income consisting of 200 interest income from a savng account 350 interest income from a certificate of deposit held with another bank 250 interest income from a us treasury 500 tax exempt interest income from municipal bond and 1700 in ordinart dividends from a mutual fund what amout will cris and allison report for taxable interest in their 1040
Aa.63. Ms. Ray is age 46 and single. This year, Mr. Ray's retirement savings included a $2,630 employer contribution to a qualified profit-sharing plan account, and a contribution by Ms. Ray to a traditional IRA. Mr. Ray contributed the maximum allowed. Required: Compute Ms. Ray's IRA deduction if current year income includes $71,320 salary.
Subject : Accounting During 2019, Angela sustains serious injuries from a snow skiing accident. She incurs the following expenses:Item AmountDoctor bills $11,700Hospital bills 9,400Legal fees in suit against ski resort 3,000Angela is single and has no dependents. During the current year, her salary is $58,000. She pays $600 in medical and dental insurance premiums, $6,750 in mortgage interest on her home, and $1,200 in interest on her car. Her health insurance provider reimburses her for $10,000 of the medical expenses. What is her current year taxable income?What is her current year taxable income? Show all Calculations
Amrinder, Mahinder and Joginder are partners in a firm. Mahinder retires from the firm. On his date of retirement, Rs. 60,000 becomes due to him. Amrinder and Joginder promise to pay him in instalments every year at the end of the year. Prepare Mahinder’s Loan Account in the following cases:1. When payment is made four yearly instalments plus interest @ 12% p.a.on the unpaid balance.2. When they agree to pay three yearly instalments of Rs. 20,000 includinginterest @ 12% p.a on the outstanding balance during the first three yearsand the balance including interest in the fourth year.3. When payment is made in 4 equal yearly instalment’s including interest @12% p.a. on the unpaid balance.
Flowers, a married taxpayer, purchased an annuity for $64,400 that will pay $700 per month over the life of Flowers and Flowers' spouse. At the time of purchase, the couple's joint life expectancy was 23 years. Flowers received payment beginning April 1, Year 1, amounting to $6,300 in the first year of the annuity contract. How much is includable in Flowers' gross income in the first year? $0 $2,100 $4,200 $6,300
Interview Notes Barbara is age 57 and was widowed in 2021. She owns her own home and providedall the cost of keeping up her home for the entire year. Her only income for 2021 was$36,000 in W-2 wages. Jenny, age 24, and her daughter Marie, age 3, moved in with her mother, Barbara,after she separated from her spouse in April of 2021. Jenny’s only income for 2021was $15,000 in wages. Jenny provided over half of her own support. Marie did notprovide more than half of her own support. Jenny will not file a joint return with her spouse. She did not receive advance childtax credit payments for 2021. All individuals in the household are U.S. citizens with valid Social Security numbers.No one has a disability. They lived in the United States all year but not in a communityproperty state. 10. Which of the following statements is true? A. Jenny is eligible to claim Marie for the EIC even though her filing status is married filing separate…
In 2020-21, Ahmed has capital gains of £130,000 and allowable losses of £24,000. Ha also has capital losses brought forward of £3,700. 17.9 Ahmed's taxable income for 2020-21 (after deduction of the personal allowance) i £22,500. He makes Gift Aid donations of £8,000 during the year. Compute his CGT liability for the year assuming that his gains of £130,000 comprise either: (a) a gain of £120,000 which qualifies for business asset disposal relief (BADR) and non-BADR gain of £10,000 on the disposal of chattels, or (b) a BADR gain of £10,000 and a non-BADR gain of £120,000 arising on the disposa of residential property, or (c) a BADR gain of £7,500, a non-BADR gain of £70,000 on the disposal of residentian property and a non-BADR gain of £52,500 on the disposal of shares.
Jessie James (46 years of age and a disabled person as defined) had the following receipts and accruals during the 2020 year of assessment: Receipts from a restaurant operated in his own name 650 000 Salary received from part-time employment 180 000 Dividends from South African companies 50 000 Interest from local bank 43 800 Interest on tax free investment 800 Jessie incurred the following expenses during the current year of assessment: Jamie incurred expenses related to the restaurant for maintenance to the building 120 000 Additional medical expenses paid 26 152 Monthly medical aid contribution 2 050 (James and his wife are members of the fund) Jessie paid the following pre-paid taxes: PAYE with regards to part-time employment 45 000 Provisional tax 80 000 In addition to the above information Jessie James had also made a profit of R200 000 on the sale of asset which he sold in the current year of assessment. QUESTION 1 Calculate Jessie's normal tax liability for the 2020 year of…
A retired 78-year-old individual is unmarried, has no dependents, and holds a part- time job that pays $3,000 per year. The individual also has corporate bonds that pay interest income each year. What is the minimum amount of interest the corporate bonds must pay for this individual to be required to file income taxes for 2021? $9,551 O $11,251 O $12,551 $21,801
Ricardo was married at the time of death and was survived by his wife and their five legitimate children when he was still alive. He died on November 1, 2018 leaving the following: Real and personal properties in the Philippines P11,000,000 Proceeds of life insurance: Receivable by the estate as revocable beneficiary 5,000,000 Receivable by the spouse as irrevocable beneficiary 3,900,000 Medical expenses within one year prior to death: Paid by the time of death 500,000 Unpaid as at the time of death 400,000 Funeral expenses: Paid by the time of death 200,000 Unpaid at the time of death 300,000…
The widow of an individual received a death benefit from his employer of $25,000. She must include the $25,000 in income in the year of receipt. True or False

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