Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. mr. goodwill, a sole trader, presents you with the

Mr. Goodwill, a sole trader, presents you with the following information to file his income...

80.2K

Verified Solution

Question

Accounting

Mr. Goodwill, a sole trader, presents you with the following information to file his income tax returns which became due and payable on March 15, 2022. Accounting Loss of Jamaican Two Hundred and Sixty Thousand Dollars (J$260,000) after charging the following: i. Depreciation $1,370,000 ii. Rent relating to rental of business premises $50,000 monthly iii. Drawings $1,500,000 iv. Salary for Mr. Goodwill of $2,000,000 per annum- P24 prepared by the accountant reflects that PAYE of $109,976 has been paid over to the Collector of Taxes on his behalf.

(Note: Assume no other taxes have been paid for him)

Other relevant information presented to you by Mr. Goodwill are: v. The building from which he operates is a new, non-industrial one constructed of wood, purchased in 2021 for $800,000. vi. He has a trade vehicle, purchased in 2015 for J$1,500,000 and a private vehicle, purchased in 2021 for J$1,000,000. Both vehicles qualify for the maximum available capital allowance as appropriate.

Required: Compute all taxes payable by Mr. Goodwill for year of assessment 2021 showing all relevant computations.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students