SelfTestQ_Partnership (2)

SelfTestQ_Partnership (2) - Both Mr R and Miss S do not...

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SelfTestQ_Partnership 1 BUSI 0018 – Hong Kong Taxation Self Test Question – Partnership Mr. R, Miss S and G Ltd. are in partnership as real estate agents and they share profits and losses in the ratio of 25%, 25% and 50% respectively. The trading results of this partnership were as follows: Year Ended 31.12.02 31.12.03 31.12.04 $ $ $ Gross profit 140,000 280,000 360,000 Less: Salary to Miss S 50,000 52,000 54,000 Rent to G Ltd 120,000 120,000 120,000 Provision for depreciation 6,000 7,000 8,000 Profits tax paid 67,000 - - Other revenue expenses 80,000 85,000 90,000 323,000 264,000 272,000 Net profit (loss) for year (183,000) 16,000 88,000 Depreciation allowances agreed by the Assessor are as follows: 2002/03 $5,000 2003/04 $6,000 2004/05 $7,000 G Ltd. is a property investment company in Hong Kong. Apart from its rental income of $120,000 p.a. from the partnership, it has other net assessable profit of $50,000 p.a. This income is subject to profits tax.
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Unformatted text preview: Both Mr. R and Miss S do not intend to elect personal assessment in the all the years concerned. Required: (a) Compute the profits tax payable by the partnership real estate agency of Mr. R, Miss S and G Ltd. for all the years concerned. (Ignore provisional tax) (b) Compute the profits tax payable by G Ltd for all the years concerned. (Ignore provisional tax) (c) Assuming that Mr. R left the partnership on 30 September 2003 and thereafter Miss S and G Ltd share the P/L equally, prepare the statement of allocation of partnership profits/losses in respect of the year 2003/04. Check Figures: Part (a): Assessable profit/(loss) (Y/A 02/03, 03/04, 04/05): ($65,000) / $69,000 / $143,000 Tax payable (Y/A 02/03, 03/04, 04/05): Nil / $10,205 / $20,760 Part (b): Tax payable (Y/A 02/03, 03/04, 04/05): $20,266 / $29,750 / $29,750 Part (c): Tax payable (Mr. R, Miss S, G Ltd.): $Nil / $8,883 / $1,487...
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This note was uploaded on 02/23/2012 for the course BUSI 0018 taught by Professor C.ng during the Spring '11 term at HKU.

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