Matendo Properties Ltd owns the following residential houses rented out to various persons. T he following information was reported for the year end 30th June 2020Property locationMonthly rent per unitMonthly expenses per unitNo. of unitsPlot 7 Nasser road400,000151,0006Plot 6 Jinja road350,000172,0004Plot 7 Wilson road200,00062,0003Plot 4 William street250,00076,0008 During the year, the following transactions took place; -2 units in Plot 4 William Street were vacated for three months.A donation from rents of shs. 600,000/= was made to Glad foundation, which takes care of street children.Security costs of shs. 500,000/= for the property for the year was not included in the total expenses for the year.Provisional tax payment of 2 installments each shs. 156,000 had been made. Required: (a) Compute Matendo Properties Ltd taxabl e income and tax liability for the year ended 30th June 2020.

Tax Liability - The amount that a person, company, or other entity owes to a federal, state, or…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Matendo Properties Ltd owns the following residential houses rented out to various persons. T he following information was reported for the year end 30th June 2020

Property location	Monthly rent per unit	Monthly expenses per unit	No. of units
Plot 7 Nasser road	400,000	151,000	6
Plot 6 Jinja road	350,000	172,000	4
Plot 7 Wilson road	200,000	62,000	3
Plot 4 William street	250,000	76,000	8

During the year, the following transactions took place; -

2 units in Plot 4 William Street were vacated for three months.
A donation from rents of shs. 600,000/= was made to Glad foundation, which takes care of street children.
Security costs of shs. 500,000/= for the property for the year was not included in the total expenses for the year.
Provisional tax payment of 2 installments each shs. 156,000 had been made.

Required:

(a) Compute Matendo Properties Ltd taxabl e income and tax liability for the year ended 30th June 2020.

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