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HELP NEEDED FOR FINALS

  • 22-04-2011 1:18am
    #1
    dudyi
    Registered Users, Registered Users 2 Posts: 3 ✭ 


    Can anyone help me with this question.. Im so stuck and my lecturer refuses to help me!!

[SIZE=1]Q.5
Cole Limited is an Irish resident company.The company began trading on 1 July2005.
The company’s results for the first four accounting periods are as follows: 

                                                                                   Year                Year           6 months          Year
                                                                                   Ended            ended     ended                     ended
                                         30/6/06  30/6/07 31/12/0731/12/08

Trading profit(loss)             40,000    38,000  (50,000)    80,000
Rental income(loss)           (5,000)    20,000   10,000      25,000
Case V Capital Allowances   5,000       5,000    5,000        5,000
Chargeable Gain adjusted    2,000       -----     15,000       3,000

Required to compute the corporation tax liability of Cole Limited for each accounting period on the assumption that full relief is claimed for all available losses assoon as possible. (20 marks)

[B]My attempt.. ??  [/B]           06           07             07            08

Trading income/loss     40,000      38,000      -----       80,000
Loss relief                                   (19,000)

Total                           40,000     19,000        ----        80,000

Rental income            (c/f loss->)
adjusted loss c/f            ----         15,000      10,000    25,000

Case 5 capital               5,000       5,000        5,000     5,000
allowance

Chargeable gain            2,000        -----         15,000    3,000
Total                            37,000     29,000       20,000   103,000                                                           

Corp tax                      4,625       2,500         3,125      15,375
                                                  (2,500)      (3,125)    
                                                   -------        -------
                                                     NIL            NIL           

[B]Note1) Loss Relief (6mths 07) [/B]                                 50,000
            s.396A 2007                                               (19,000)
            s.396B 2007                                               (25,000)
                                                                                --------
                                                                                6,000
            s.396B 2006 (6mths allowed)                           (6,000)
                                                                                      NIL

[B]Note2) Corp tax[/B]
           (6 months 2007)
            5,000x25% + 15,000x12.5%                            3,125

           Year end 2007 
           10,000x25%                                                      2,500
          
            Year end 2006
           37,000x12.5%                                                   4,625                            [/SIZE]




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