Posted: September 22nd, 2022

ACCT 422

Project 1
Deadline: eight/10/2022 at 23.59 pm

Course Title: Tax AND Zakat Accounting Scholar’s Title:
Course Code: ACCT 422 Scholar’s ID Quantity:
Semester Summer season Semester CRN:
Educational 12 months: First Semester 1444 H

For Teacher’s Use solely

Notes:
• The Project have to be submitted on Blackboard (WORD format solely) by way of allotted folder.
• Assignments submitted via electronic mail won’t be accepted.
• College students are suggested to make their work clear and effectively offered; marks could also be decreased for poor presentation. This contains filling your info on the quilt web page.
• College students should point out Question Assignment quantity clearly of their reply.
• Late submission will NOT be accepted.
• Keep away from plagiarism, the work must be in your personal phrases, copying from college students or different assets with out correct referencing will end in ZERO marks. No exceptions.
• All answered have to be typed utilizing Instances New Roman (measurement 12, double-spaced) font. No photos containing textual content will probably be accepted and will probably be thought of plagiarism).
• Submissions with out this cowl web page will NOT be accepted.

Q1. Clarify the tax therapy for the next transactions beneath article (9) of the earnings tax regulation 🙁 7.5 marks)
a. Tax payer has private asset valued at SAR 100,000 a value base of SAR 80,000. Incomes beneficial properties of SAR 20,000. What’s the acquire or loss on the disposed asset?
Reply:
.

b. Tax payer has an asset of two parts and he disposed one part for SAR 50,000 Money. The tax payer bought that asset for SAR 100,000 Money 5 years in the past. The knowledgeable valued that belongings on the time of buy for SAR 200,000 out of which SAR 70,000 was belong to the disposed part. What’s the acquire or loss on the disposed asset?
Reply:

c. Tax payer possess land with guide worth of SAR 100,000 and he paid SAR 20,000 Money to enhance the land. Are bills deductible?
Reply:

d. Tax payer disposed an asset encumbered by debt amounted to SAR 120,000 however Its market worth is SAR 100,000 with value base of SAR 80,000 .What’s the acquire or loss on the disposed asset?
Reply:

e. Tax payer transformed an asset used within the exercise to his private use with a value base of SAR 50,000 and market worth of SAR 40,000. What’s the acquire or loss on the disposed asset and whether or not beneficial properties or losses considered when figuring out tax base?
Reply:

Q2. Tax payer incurred bills of SAR 10,000 to change and enhance tools with a value base of SAR 100,000. Are these bills deductible beneath article 18 of the regulation? (2.5 marks)
Reply:
.

Q3. Tax payer recorded the next journal entry (2.5 marks)
a.
D r. Dangerous debt expense 10,000
Cr. Provision for uncertain receivable 10,000

Required: Is that provision deductible beneath article (14) of the regulation ?
Reply:

b. 1n 2020
D r. Accounts receivable (Ibrahim) 100,000
Cr. Gross sales 100,000

In 2021
D r. Dangerous debt expense 20,000
Cr. Accounts receivable Ibrahim)
Required: Is that dangerous debt expense deductible beneath article (14) of the regulation?

Reply:

This autumn. In monetary accounting tax payers can select any depreciation charges for depreciable belongings ,however when tax payers put together theie tax base , they need to apply depreciation charges in line with article (17 ) of the earnings tax regulation, So, clarify depreciation charges in line with article (17) (2.5 marks)
Reply:

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