exercise_3 (1)

exercise_3 (1) - MA526/MA826 FINANCE AND FINANCE REPORTING...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
MA526/MA826 FINANCE AND FINANCE REPORTING EXERCISE 3 1. What is “taxable income”? Based on 2009/10 tax bands and rates calculate the income tax liability for an individual who has a taxable income of £60,000. 2. What adjustments to a company’s accounting profits need be carried out in order to arrive at “ taxable profit”. 3. Mr X bought an oil painting on 25 June 1990 for £13,000. In 1992, Mr X discovered his painting was in need of some restoration. He sent his painting off to the restorers who returned it to him in July 1992, together with their bill for £2,500. In May 2009, Mr X sold the painting for £36,000. What was the chargeable gain which Mr X incurred from this transaction? 4. After income tax, Mr X has £1000 of the 20% tax band left unused. He makes a single chargeable gain in the tax year of £15,000, how much tax does he pay? 5. Briefly explain which of the following items would be subject to capital gains tax? a.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/07/2011 for the course MA 826 taught by Professor Loba,millet during the Spring '11 term at Kent Uni..

Page1 / 2

exercise_3 (1) - MA526/MA826 FINANCE AND FINANCE REPORTING...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online