TRUE OR FALSE Interest treated as capital expenditures is a deductible interest expense. There is no tax benefit when the company chooses to source out funds by borrowings. 15% capital gains tax on net capital gains is imposed to investors whose sale of stocks which is not listed or traded in the LSE.

TRUE OR FALSE Interest treated as capital expenditures is a deductible interest expense. There is no tax benefit when the company chooses to source out funds by borrowings. 15% capital gains tax on net capital gains is imposed to investors whose sale of stocks which is not listed or traded in the LSE.

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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2. Table is given below shows that marginal tax rates for Alejandro Corporation. TaxableIncome of the Company is equal to $44.000. How much will the Company pay tax totally?Average tax rate? taxable income(dollar) tax rate 0-16.000 10% 16.000-39.000 12% 39.000-55.000 16% 55.000-70.000 19% 70.000-86.000 23%
8. A closely-held corporation, deemed committed unreasonably accumulating its income, shows the following data: Paid-up capital Accumulated Earnings - unrestricted Accumulated Earnings - restricted Income tax per annual income tax return Income tax for the first three quarters Final tax on passive income at 20% Capital gains tax at 15% Compute the amount of improperly accumulated earnings tax (IAET). P 10,000,000 8,000,000 2,000,000 300,000 240,000 60,000 45,000 8
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A9
Subject Finance
Unless a company has a legal right of set-off, IAS 12 Income Taxes, requires disclosure of all of the following information for deferred tax in the statement of financial position: I The amount of deferred tax assets recognised II The amount of the deferred tax liabilities recognised III The net amount of the deferred tax assets and liabilities recognised IV The amount of the deferred tax asset relating to tax losses a. I, II and III only b. III and IV only c. I, II and IV only d. IV only
A company recently reported $9.8 million of net income. Its EBIT was $15 million, and its federal tax rate was 22%(ignore any possible state corporate taxes).What was its EBT? Blank 1What was its Tax liability? Blank 2What was its interest expense? Blank 3
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