UNIVERSITI UTARA MALAYSIA BKAT 2013 – PRINCIPLES OF TAXATION TUTORIAL 3 – UNEARNED INCOME QUESTION 1 Under what circumstances income derived from rental of properties is taxable under Section 4(a) – Business Income instead of under Section 4 (d) – Investment income? QUESTION 2 (A) Mr. Rozmi has opted to retire from MR Resources Sdn Bhd in 2011. In 2012, he reported the following with regards to his income: Pension - optional retirement | 3,000 | Annuity paid by Bening Insurance Bhd,
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to the owners of the company and split among them based on their percentage ownership of the company. A relationship will not exist among retained earnings and a company’s cash arrangement. If the two type of capital were not kept separate, the net income will be overstated, and show the company is more profitable than it is. Inventors analyze capital to determine how the company handles both its paid-in and earned capital. It serves an indication of how the company is run. If the company has little
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an effect on the net income. By stretching out depreciation, Delta will see a decrease in depreciation expense resulting in higher net income. This is crucial for not only for Delta Air Lines, but to all airlines companies as well as intense competition and deregulation in the industry were being pressured to show more profits and results. The disadvantage to decreasing in depreciation is taxes. With decreased depreciation and increased net income, Delta Air Lines’ income taxes increased as well
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pwc.com.au/mba PwC analysis of the major banks results for full year 2012 Modest growth, potential for more ... The most recent Australian bank results show the extent of headwinds facing the Australian banks. After two years of double-digit profit growth, underlying cash earnings rose by only 3.6% in 2012. All of that growth came early in the year; with profit showing no growth in the second six months compared to the first half-year. At the same time, the banks continued to strengthen
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SIEBEL SYSTEMS: ANATOMY OF A SALE What are the positives and negatives of Gregg Carman’s performance in gaining an entry into Quick & Reilly? In view of this, would you rate his performance favorably? Going forward what is most potent threat that could jeopardize Carman’s plan? Justify your answers using case facts. Siebel Systems was formed with the dual objective of being a high technology enabler focused entirely on customer satisfaction with enduring values. The company was part of the tipping
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labor economics may be through government taxation on the workers. If income taxes increase, workers will likely substitute leisure for consumption and supply less labor. Any effects on the supply and demand for labor will ultimately affect the labor market thus are essential in labor economics. Distribution of income may also affect the labor market especially if the distribution is unequal. Inequality in the distribution of income will affect workers and thus affect labor supply. Production of goods
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less students trying to enroll in the MBA program. But I think that would depend on if the increase would place them at the same salary level as the starting salary for managers with MBA degrees. It also may depend on the individual persons desired income level the increase even if it was not as much as the starting salary may be enough for some. #14 A. Tara’s accounting cost the first year would be $16,000. Based on the information given Tara is giving up a job making $56,000 a year and she
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Times Interest Earned* 18 4.8+1.5 = 2.86 x 18 4.8 = 3.75x Operating Profit 18,000,000 18,000,000 Interest Expense 6,300,000 4,800,000 Earnings before tax 11,700,000 13,200,000 Income tax exp. (40%) 4,680,000 5,280,000 Net Income 7,020,000 7,920,000 Shares Outstanding 800,000 1,000,000 Earnings Per Share $8.78 $7.92 Return on Equity 7,020 50,000 = 14.04% 7,920 60,000 = 13.20% Return on Assets (adjusted)
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UPS: What are the business objectives of this organization? UPS has objectives for growing its revenue and profit over the next 3-to-5 years while continuing to invest in new technology and expanded facilities. The most effective business objectives meet the following criteria: Objectives are aimed at what the business does. The business can put a value to the objective. It’s agreed by all those concerned in trying to achieve the objective. The objective should be challenging, but it
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Roberts proposed was not necessarily the best representation of the variances for Boston Creamery. Roberts’ report stated a favorable variance of $71,700 coming mainly from sales volume. He used the revised budgeted operating income and the original budgeted income to come up with the sales volume number. The budget was not detailed as to what accounted for the differences though. That would be the first change to the variance analysis report, provide a clearer depiction of the results.
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