Ican 2024 Taxation Question 4

Practice mixed question 4 from the 2024 Ican Taxation examination.

Ican 2024 Taxation Mixed

Question 4 ICAN • 2024 • TAXATION • mixed

Case Stimulus

Pkikan Nigeria Limited has been in business for several years preparing accounts to December 31 annually. You are given the following information about the company’s activities for the year ended December 31, 2021. N’000 Turnover 1,300 Cost of sales (400) Gross profit 900 Less: Total expenses (1,100) Net loss for the year (200)

Additional Information

{ "label": "(i)", "content": "Total expenses included: N Cost of stamping documents 50,000 Depreciation charges 20,000 Withholding tax paid on rental income 30,000 General and administrative expenses 550,000 Refurbishing of equipment 60,000 Repainting of premises 80,000 Pre-incorporation expenses written off 10,000 Acquisition of plant 100,000 Transfer to capital redemption reserve fund For the future development of the business 200,000 1,100,000" }

{ "label": "(ii)", "content": "After the review of the company’s accounting records, N400,000 meant for the Managing Director of the company was erroneously included in the turnover for the year." }

{ "label": "(iii)", "content": "The issued share capital of the business was N1.8 million, out of which, the shareholders representing N300,000 are yet to pay the final call." }

{ "label": "(iv)", "content": "The net assets of the company was N850,000." }

{ "label": "(v)", "content": "There was a loss brought forward of N210,000 relating to the previous year of assessment and the agreed capital allowance with the Revenue was N385,000." }