Self-Test Profits Tax Computation2

Self-Test Profits Tax Computation2 - BUSI 0018 Hong Kong...

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1 BUSI 0018 – Hong Kong Taxation Self Test Question – Profits Tax Computation Question 2 Topgun Ltd. has been carrying on business in Hong Kong as a toys manufacturer since 1985. Its trading results for the year ended 31 December 2009 were as follows: Income ($’000) Gross trading profit 8,000 Dividends (Note 1) 950 Interest income (Note 2) 265 Profit from sale of patent (Note 3) 50 Sundry income 35 9 , 3 0 0 Expenses Advertising 286 Audit fee 45 Bad debts (Note 4) 130 Bank interest (Note 5) 168 Depreciation 1,328 Directors fee 690 Donations (Note 6) 150 Entertainment 264 Legal and professional expenses (Note 7) 125 Other expenses 1,306 Profits tax paid 150 Purchase of patent right (Note 8) 120 Repairs and maintenance 93 Rent and rates 1,200 Salaries and allowances 1,650 7 , 7 0 5 Net Profit 1 , 5 9 5 Notes: (1) Dividends $ From listed shares in Hong Kong stock market 550,000 From listed shares in USA stock market 400,000 950,000 (2) Interest income On HK dollar deposits placed with Hong Kong bank in USA
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Self-Test Profits Tax Computation2 - BUSI 0018 Hong Kong...

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