Computer equipment 6 000 January 2011 4 500 Manufacturing machinery 120 000 May 2010 100 800 Furniture 8 200 September 2009 6 421 3 299 Toyota 30 000 March 2012 40 000 Commercial vehicle 20 000 June 2012 10 000 18 000 Toyota Surf 16 000 September 2012 Included in general expenses are:- $ Audit and accounting fees 2 000 Scholarship fees: Clothing & Textiles 8 000 Interest on loan to acquire industrial building 4 000 Removal of factory stock 2 878 Loss on sale of furniture 3 122 20 000 The company entered into a five year agreement for which it paid a Lumpsum of $12 000 and rentals of $4 000 to Amalgamation Transport Services for the lease of a Mercedez Benz which was used by marketing manager to boost exports of blankets to other countries. For the production of variety of blankets, the company embarked on experiment and research which costed $18 000 and excluded from this amount are the following expenses incurred. $ Advertisement and promotion of blankets in Zambia 6 000 Providing samples of Blankets in Botswana 8 000 Electricity connection fee 6 000 Renewal of business license 2 000 22 000 Required:- State the treatment of the grant awarded to company in the year of assessment. (1 mark) List five advantages that will be enjoyed by the company as an investor in Zimbabwe. (5 marks) Calculate minimum taxable income for Sonnage Investments (Private) Limited for the year 31 December 2012. (22 marks) QUESTION 3
Computer equipment 6 000 January 2011 4 500 Manufacturing machinery 120 000 May 2010 100 800 Furniture 8 200 September 2009 6 421 3 299 Toyota 30 000 March 2012 40 000 Commercial vehicle 20 000 June 2012 10 000 18 000 Toyota Surf 16 000 September 2012 Included in general expenses are:- $ Audit and accounting fees 2 000 Scholarship fees: Clothing & Textiles 8 000 Interest on loan to acquire industrial building 4 000 Removal of factory stock 2 878 Loss on sale of furniture 3 122 20 000 The company entered into a five year agreement for which it paid a Lumpsum of $12 000 and rentals of $4 000 to Amalgamation Transport Services for the lease of a Mercedez Benz which was used by marketing manager to boost exports of blankets to other countries. For the production of variety of blankets, the company embarked on experiment and research which costed $18 000 and excluded from this amount are the following expenses incurred. $ Advertisement and promotion of blankets in Zambia 6 000 Providing samples of Blankets in Botswana 8 000 Electricity connection fee 6 000 Renewal of business license 2 000 22 000 Required:- State the treatment of the grant awarded to company in the year of assessment. (1 mark) List five advantages that will be enjoyed by the company as an investor in Zimbabwe. (5 marks) Calculate minimum taxable income for Sonnage Investments (Private) Limited for the year 31 December 2012. (22 marks) QUESTION 3
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