provide correct answer Samantha, a sales tax registered trader, purchased a printer for use in herbusiness. The invoice for the printer showed the following costs related tothe purchase:Printer: £750Additional ink cartridges: £80Delivery cost: £15Installation fee: £25Annual maintenance contract: £30The sales tax applied is 20%, and the total invoice amount is £1,080.How much should Samantha capitalize as a non-current asset in relation tothe purchase?a) £900b) £870c) £840d) £444

Step 1: Definition of Capitalization of Non-Current AssetsCapitalization refers to the process of…

Answered: Samantha, a sales tax registered…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 10MCQ: Which of the following will result in the recognition of gross income? Gail's employer allows her to...

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Similar questions

Sam bought a ring for $2,000 from Zales. He must pay at 6% sales tax and 9% excise tax. Since the Jeweler is shipping the ring, Sam must also pay a $20 shipping charge. What is the total purchase of Sam's ring?
Which of the following will result in the recognition of gross income? Gail's employer allows her to set aside $ 4,000 from her wages to cover the cost of daycare for Gail's four-year-old daughter. Gail's daycare costs are $ 4,300 for the year. Hannah purchases a new sofa from her employer, Sofas-R-Us, for $ 1,200. The cost of the sofa to the furniture store is $ 1,100 and the sofa normally sells for $ 1,700. Jayden's employer purchases her commuting pass for the subway at a cost of $ 225 per month. Havana is a lawyer. The law firm she works for pays for her subscription to Lawyer's Weekly, a trade magazine for attorneys. None of the above will result in recognition of gross income.
Jaime purchased a sewing machine. After 8% sales tax, she paid $139.32. What equation can be used to find the pre-tax price of the sewing machine? p+ 0.08p = 139.32, where p is the pre-tax price of the machine. p – 0.08p = 139.32, where p is the pre-tax price of the machine. p – 0.08 = 139.32, where p is the pre-tax price of the machine. p+ 0.08 = 139.32, where p is the pre-tax price of the machine.
Nikki works for the Shine Company, a retailer of upscale jewelry. How much taxable income does Nikki recognize under the following scenarios? (Round your answers to 2 decimal places. Leave no answer blank. Enter zero if applicable.) a. Nikki buys a diamond ring from Shine Company for $13,900 (normal sales price, $17,920; Shine Company’s gross profit percentage is 40 percent). b. Nikki receives a 26 percent discount on jewelry restoration services offered by Shine Company. This year, Nikki had Shine Company repair a set of antique earrings (normal repair cost $670; discounted price $495.80).
Sarah purchased a warehouse for £420,000 in September 2020. She sold a retail premises to Bettina for £152,000 in November 2020. How much Stamp Duty is payable on these transactions and by whom? £10,540 by Sarah O £21,000 by Sarah and £3,040 by Bettina O £10,500 by Sarah and E40 by Bettina O £24,040 by Sarah
Lois Clark bought a ring for $6,700. She must still pay a 5% sales tax and a 10% excise tax. The jeweler is shipping the ring, so Lois must also pay a $40 shipping charge. What is the total purchase price of Lois's ring? Total purchase price
Roxy operates a dress shop in Arlington, Virginia. Lisa, a Maryland resident, comes in for a measurement and purchases a $2,800 dress. Lisa returns to Virginia a few weeks later to pick up the dress and drive it back to her Maryland residence, where she will use the dress. Assuming that Virginia's sales tax rate is 5 percent and that Maryland's sales tax rate is 6 percent, what is Roxy's sales tax collection obligation? Multiple Choice $0 $140 to Virginia $140 sales tax to Virginia and $28 use tax to Maryland $168 to Maryland
Talbot purchases business machinery for a price of $100,000. Talbot pays the seller $20,000 in cash and finances the rest by giving the seller a note for $80,000. What is Talbot’s initial basis in this machinery?
Can you please solve this general accounting question?
Ferran operates a boutique yarn store from their own. The store had accountingincome after tax of $50,000. Already deducted from that number are depreciation of$5,000, financing fees of $2,500, and salaries to arm's length employees of $10,000.CCA would be $4,000.Calculate Ferran's taxable income based on what you know about them?
Nicky receives a car from Sam as a gift. Sam paid 48,000 for the car. He had used it for business purposes and had deducted 10,000 for depreciation up to the time he gave the car to Nicky. The fair market value of the car is 33,000. a. Assuming that Nicky uses the car for business purposes, what is her basis for depreciation? b. Assume that Nicky deducts depreciation of 6,500 and then sells the car for 32,500. What is her recognized gain or loss? c. Assume that Nicky deducts depreciation of 6,500 and then sells the car for 20,000. What is her recognized gain or loss?
Some years ago, after he graduated, Fred Murray (the musician) opened his own retail shop selling musical instruments. His recent profit for the 2021/22 tax year was £21,700 after having deducted the following expenses. He had already deducted drawings of £2,200 per month in calculating this profit figure. Entertainment of foreign suppliers £1,700 (of which £200 was for entertaining his own family) Penalty fees for non-submission of tax return, £851 Petrol costs of £2,000 (of which 20% was for private use) Painting of the interior of the musical shop, £550 Calculate for Fred the correct profits that he should include on his tax return for 2021/22.

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