Question 4
ICAN
•
2023
•
TAXATION
•
mixed
Case Stimulus
As part of the induction programme for the newly recruited staff of your firm of tax consultants, you have been saddled with the responsibility of making a presentation on companies income tax computation for beginners during the firm‟s training session.
You are provided with the following information relating to Wizzy-Baddo Limited, which commenced business on September 1, 2020:
Adjusted
Profit
(N)
Period to December 31, 2020 6,937,500
Year ended December 31, 2021 9,300,500
The following assets were acquired as follows:
N
June 5, 2020 – Land and building 5,467,500
July 1, 2020 – Motor vehicle 10,000,000
October 15, 2020 – Machinery 4,375,000
February 28, 2021 – Furniture 3,458,000
May 1, 2021 – Delivery van 4,750,000
Requirements
(
a
)
State the basis periods for assessable profits and qualifying capital expenditure
(
b
)
Compute the capital allowances
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About This Question
This is
Ican
2023
Taxation
Question 4.
It is one of the
mixed
questions from the
2023
Ican
Taxation
examination.