a- A tax payer acquires an asset through manufacturingit and he incurred the following...

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Accounting

a- A tax payer acquires an asset through manufacturingit and he incurred the following costs: direct material SR 100,000,direct labor SR 50,000 and manufacturing overhead SR 50,000. After3 years the taxpayer disposed of that assets for SR250,000cash
Required: Compute the taxable gain or loss.
b- A tax payer acquired a non-depreciable asset for SR200,000 and he incurred subsequent expenses for SR 30,000 to alterand improve that asset, after 2 years the tax payer disposed ofthat asset for SR 215,000 cash.
Required: Compute the taxable gain or loss.
c- A tax payer acquired an asset for SR100,000 and subsequently he disposed of that assets as agift.
Required: how much is taxable gain if the market valueof that assets at date of disposing for SR120,000.
d- A tax payer acquired an asset for SR 150,000 throughborrowing and he subsequently disposed of that assets when themarket value of the asset was SR 140,000 and value of the debt wasSR 150, 000.
Required: Compute the taxable gain or loss.
e- A tax payer incurred expenses of SR 75,000 topurchase equipment used for research and development and incurredResearch and development expenses connected with the earning oftaxable of SR 50,000.
Required: which of the two expenses are deductible underSaudi Tax law?

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3.9 Ratings (563 Votes)

a Discription of Asset is not given so it is assumed that it falls in 10 bracket All other tangible or intangible assets not included in previous categories such as furniture planes ships and trains and goodwill Total cost for manufacturing Machine SR 200000 Cost of Machinery in 1st Year SR 200000 Less Depreciation 10 SR 20000 Value of See Answer

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In: Accountinga- A tax payer acquires an asset through manufacturingit and he incurred the following costs:...a- A tax payer acquires an asset through manufacturingit and he incurred the following costs: direct material SR 100,000,direct labor SR 50,000 and manufacturing overhead SR 50,000. After3 years the taxpayer disposed of that assets for SR250,000cashRequired: Compute the taxable gain or loss.b- A tax payer acquired a non-depreciable asset for SR200,000 and he incurred subsequent expenses for SR 30,000 to alterand improve that asset, after 2 years the tax payer disposed ofthat asset for SR 215,000 cash.Required: Compute the taxable gain or loss.c- A tax payer acquired an asset for SR100,000 and subsequently he disposed of that assets as agift.Required: how much is taxable gain if the market valueof that assets at date of disposing for SR120,000.d- A tax payer acquired an asset for SR 150,000 throughborrowing and he subsequently disposed of that assets when themarket value of the asset was SR 140,000 and value of the debt wasSR 150, 000.Required: Compute the taxable gain or loss.e- A tax payer incurred expenses of SR 75,000 topurchase equipment used for research and development and incurredResearch and development expenses connected with the earning oftaxable of SR 50,000.Required: which of the two expenses are deductible underSaudi Tax law?