Reference no: EM132472630
Question 1: Calculate the Net Income, Annual Corportate Taxes and VAT (fiscal year 2019) of a Company located in Madrid, Spain based on the following information:
- The Company has an Tax ID as an Intracommunity Operator.
- All values with no VAT included.
- Corporate Tax rate in Spain is 25%.
- Make use of the LTD table and Solution worksheets.
Point 1: Salaries of 45,000 EUR in 2019
Point 2: Advertising 12,000 EUR in 2019 @ 21% VAT
Point 3: Dividends of 4,000 EUR in 2019
Point 4: Revenues of 450,000 EUR in 2019 (40% were national sales and the rest from Italian customers). Assume a VAT rate of 21%
Point 5: Utilities of 11,000 EUR in 2019 @21% VAT
Point 6: In Dec, 31 st 2018 the ending Inventory was 100,000 EUR, purchases during 2019 were 220,000 EUR (@ 21% VAT) and final inventory at the end of 2019 was 50,000 EUR.
- 40% of the raw material is supplied by a Murcian Company, and 60% by company based in France.
Point 7: The company paid 7,000 EUR to reduce its accounts payable.
Point 8: A Long-term debt was signed in March 1st 2015 with BBVA Bank to finance a machinery wich its cost was 65,000 EUR (@VAT rate of 16%). The contract will last only 5 years.
- The useful life of the asset is 5 years. Assume a salvage value of 1,400 EUR Use the straight line depreciation.
- Use the french system amortization. All payment will take place at the end of each month. Fixed interest rate is 4.35% p.a. (monthly payments)
Point 9: Depreciation of other fixed assets were 11,000 EUR in 2019
Point 10: Renting expenses were 17,000 EUR in 2019 @21 VAT
Point 11: Cash collections from a national customer were 4,500 EUR, 60 days later when the Invoice was issued.
Point 12: Transportations expenses were 10,000 EUR in 2019 @21 VAT
Point 13: Interests income earned from a Financial Investment were 5,300 EUR
Point 14: Insurance expenses in 2019 were 5,850 EUR @21% VAT
Point 15: The machinery purchased (item 9) was sold at its current book value by October 1st 2019. Assume a VAT rate of 16%
Point 16: The Company plans to start renting a new Warehouse by January 2020, so 1,400 EUR had to be paid in advance by December 21st, 2019. Assume a VAT rate of 21%
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