User Account

All Pages

Define expenses are allowable or non-allowable deduction

Assignment Help Accounting Basics
Reference no: EM132748091

Question: Rajesh started an electrical manufacturing and trading business named Rajesh Electrical Manufacturing and Trading on 1 February 2019. The following were expenses incurred by the business for the year ending 31 December 2019.

- Legal fees of RM4,000, which include fees for collection of a debt of RM 2,000, bank loan arrangements of RM1,500 and the cost of an income tax appeal of RM500 for late filing.

- Repairs and maintenance of RM12,000 which includes the replacement of a damaged door of the same type and size worth RM3,000 on 20 January 2019 and the extension of the roof of the shop amounting RM9,000 on 1 June 2019.

Required: Evaluate (by indicating the amount) with reasons whether the above expenses are allowable or non-allowable deduction for the business in the year of assessment 2019.

Reference no: EM132748091

Questions Cloud

Design three additional substantive audit procedures : The recorded balance in the cash account at the company you are auditing is $22,000, and you have set materiality at $75,000. It is close to the end.
What is wicker company contribution margin ratio : Sales $41,900 Food and packaging $17,966 Payroll 10,600 Occupancy (rent, depreciation, etc.) 5,974 General, selling, and administrative expenses.
What is the issue price for the bond : Corkicle company manufactures Clorox wipes for use by people and their families. Because of the virus lately, there has been a great demand for their product.
What should city printing department charge other department : The Printing Department of a city is properly accounted for by the city as an Internal Service Fund. For the year 2020, the Printing Department estimates.
Define expenses are allowable or non-allowable deduction : Evaluate (by indicating the amount) with reasons whether the above expenses are allowable or non-allowable deduction for the business in the year of assessment.
Determine the amount of impairment that should be recorded : Assume that the welding machine has a fair value less costs to sell of $420,000. Determine the amount of impairment that should be recorded for the cash.
What are some of items that should be included in letter : Accounting Communication Activity You were recently hired as the head of a company's ethics division. As one of your first acts, you decide to prepare a letter.
Determine the annual after-tax cash flows : Western Corporation is considering the acquisition of a new machine that costs $350,000. The machine is expected to have a four-year service life and will.
Calculate the amount of gross profit : High Quality Jewelers uses the perpetual inventory system. On March? 3, High Quality sold merchandise for $55,000 to a customer on account with terms.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss the importance of ethics in accounting

Discuss the importance of ethics in accounting. Why is it important for accountants to maintain high ethical standards? What are the potential penalties

  Discuss an actual expenditure cycle for kia motors

Do you know where this expenditure cycle was sourced from and if it is an actual expenditure cycle for Kia Motors

  Discuss reduce product manufacturing cost

What strategy might you develop as a manager to (i) increase product prices, or (ii) reduce product manufacturing cost

  Prepare the journal entry for the bond redemption

Rebound Co. issued $300,000 of 10%, 10-year bonds, callable at 105 after three years, at face value. Prepare the journal entry for the bond redemption

  What are some important assumptions commonly made

What are some important assumptions commonly made in CVP analysis? Do these assumptions impose serious limitations on the analysis? Why or why not

  Determine the Ending inventory and Cost of Sales

Margaret's Megamart Ltd uses the periodic inventory system. Determine the Ending inventory and Cost of Sales for the month of December

  What is his taxable income from the activity

Five years ago Gerald invested $150,000 in a passive activity, How much can Gerald deduct in 2018 and 2019? What is his taxable income from the activity in 2020

  Personal items for safe keeping

It's a good idea to have an inventory of your personal items for safe keeping. Design a worksheet that will keep track of your personal items divided by category; for example: living room, dining room, bedroom, and so forth.

  What is the balance of the account for equity investment

When Flavo Inc. prepares its balance sheet at the end of the year, what is the balance of the account for Equity Investment---Tastey Company

  What is the best way to create the transaction

What is the best way to create the transaction? As part of the end-of-year process, your client wants to see the balance of their Accounts Payable

  Who are the firm auditors

To analyze the financial statements of a publicly traded company. Who are the firm's auditors? Do they provide a clean opinion on the financial statements

  What is meant by dilution of eps

ON January 1, the commpany had 100,000 common shares outstanding. On April 1, the company issued 30,000 additional shares.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd