Question 2
ICAN
•
2022
•
TAXATION
•
mixed
Case Stimulus
You attended an interview for employment as Assistant Manager (Tax) in a professional firm. The following were presented to you to proffer solutions:
Mariam, Ola, Jude and Co., a firm of quantity surveyors makes up its accounts to December 31, of each year. The following details were extracted from the firm’s accounting books in respect of the year ended December 31, 2019:
N
(i) Net profit for the year 1,540,000
(ii) Legal expenses for successfully defending one of the partners for alleged professional misconduct formed part of legal fees in the accounts 100,000
(iii) Depreciation 360,000
(iv) Profit on sale of property, plant and equipment 4,220
(v) Balancing charge 10,400
(vi) Balancing allowance 6,900
(vii) Capital allowances for the year 300,000
Additional information available is:
(i) Profit sharing ratio agreed by the partners:
Mariam 2, Ola 3, Jude 5
(ii) Mariam, Ola and Jude received N7,400 each per annum as interest on loan to the firm.
(iii) Salaries paid to each of the partners are:
Mariam - N240,000, Ola - N200,000 and Jude - N220,000.
Requirements
(
)
Compute the personal income tax assessable for each partner for the relevant year of assessment.
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About This Question
This is
Ican
2022
Taxation
Question 2.
It is one of the
mixed
questions from the
2022
Ican
Taxation
examination.