Mr. Go, a contractor who won the bid for the construction of a public highway, claims as an expense, facilitation fees which according to him is a standard operating procedure in transactions with the government. Can Mr. Go deduct the amount paid as a facilitation fee? Briefly explain.
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Mr. Go, a contractor who won the bid for the construction of a public highway, claims as an expense, facilitation fees which according to him is a standard operating procedure in transactions with the government. Can Mr. Go deduct the amount paid as a facilitation fee? Briefly explain.
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- 14) When examining revenue transactions, which of the following transactions is classified as an exchange transaction? A) When a homeowner pays property taxes B) When a university receives a federal grant that mandates a certain type of research activity C) When an aquatic center receives cash for a group swim D) When an employer deducts money for state tax withholdingWhich of the following statements are TRUE?(i) Interest expense incurred on loan to purchase motor cars for salesmen’s use is deductible as the salesmen use the cars only for meetings with customers and suppliers.(ii) Expenses which qualify for special deduction under Section 14Q relates to capital expenditure which do not qualify for capital allowances claim.(iii) Donation of computers to institutions of public character by an individual is not deductible.1. According to the article by Tony Dimitriadis (see Supplementary Study Materials Folder), whether an amount received by a taxpayer following the sale of a capital asset (e.g. real estate) will be treated as capital or income depends largely on: Select one: The intention of the taxpayer when the property was first acquired The degree of renovation and development carried out on the property Whether the taxpayer held on to the property, rather than making a short term profit Whether the taxpayer is an individual or a business taxpayer All of the above are important considerations 2. Select the INCORRECT statement from the following options: Select one: The Cost Base of Personal Use Assets excludes Element 3 expenses (Ownership Costs) An antique vase bought at a garage sale for $200 and sold for $20,000 is exempt from CGT The indexation rate for assets acquired on 2 February 1986 was 41.4 All costs incurred under Element 3 (Ownership Costs) should be included in the indexation…
- Marvin is a state legislator. Bases on his belief that a certain infrastructure project in the public’s best interest, Marvin in favor of the project. Several weeks later, a contractor who financially benefited from the project approaches Marvin with an envelope full of cash and thanks him for his “public service.” If Marvin accepts the cash, which of the following best describes his violation? A. Official bribery. B. Commercial bribery. C. Illegal gratuity. D. Economic extortion.Revenue from property taxes should be recorded in the General Fund: When received. When there is an enforceable legal claim. O When they are available for recognition. O In the period for which the resulting resources are required or permitted to be used. In the period in which the tax bills are mailed. Question 4An insured is purchasing a Building and Personal Property Coverage Form (BPP) to cover her business. She asks the agent to explain how her property will be valued in the event of a loss. Which one of the following statements made by her agent accurately describes how the covered property will be valued in the event of loss? The insurer is obligated to pay replacement cost regardless of whether or not the property has actually been repaired or replaced. The insurer is obligated to pay the cost to replace the damaged or destroyed property with new property of like kind and quality without any deduction for depreciation or obsolescence. Insurers underwrite the coverage carefully because some items that can be difficult to value, such as manuscripts, works of art, antiques, and rare articles, are covered for replacement cost. If the insured elects to accept an ACV claim settlement, the insured is barred from later requesting payment of replacement cost.
- 1) Determine whether each of the following elements should be classified as taxes, licenses, permits, intergovernmental revenues, service fees, fines, forfeiture, or miscellaneous income in a government fund. A) Government sales and usage taxes. B) Citizen payments for the use of the city pool. C) Building permits to build a roof in a house 2) Explain income, expenses, receipts, and payment? Draw the figure with an example? What is the difference between the two statements? 15 degrees.1) Determine whether each of the following elements should be classified as taxes, licenses, permits, intergovernmental revenues, service fees, fines, forfeiture, or miscellaneous income in a government fund. A) Government sales and usage taxes. B) Citizen payments for the use of the city pool. C) Building permits to build a roof in a house 2) Explain income, expenses, receipts, and payment? Draw the figure with an example? What is the difference between the two statements?1. The street maintenance division of a municipality is privatized and sold all the maintenance equipment to private company. The employees of street maintenance division hired by the private company and provided the same services as previously provided by the municipality. This division was provided street maintenance by the municipality and charged fees for users. With that fees collected from the users, the municipality cover its operating expenditure and interest for its borrowings. a) Is there is any difference in the accounting and reporting procedures between municipality and private businesses that provide the same street maintenance services?b) Discuss and list down the information requirements of the private management to make financial decision? 2.The long-term assets and liabilities are not generally accounted under general funds however it accounted through non-fund accounts. You are required to discuss the above mentioned statement with suitable examples.
- 17. VAST Corporation incurred the following expenses. Which of the following is non-deductible? a. Salaries of the officials and employees b. Insurance premiums on the buildings c. Gifts given to public officials who favored VAST Corporation's contract with the government d. Entertaining prospective customersD4. Residents of a neighborhood financed the installation of sidewalks through a note payable. The note was to be repaid through a special assessment tax on their properties. When is it appropriate to account for special assessment activities in custodial fund? In which fund should the special assessment tax receipts be reported if they do not meet the criteria for a custodial fund.What is the objective of the process of abatement? To give legal structure to the reductions that must be made if an estate has insufficient assets to satisfy all legacies. To ensure that all property distributions take place in a timely manner. To provide adequate compensation for the estate executor and any appraisers or other experts that must be hired. To ensure that all legacies are distributed to the appropriate party as specified by the decedent’s will or state laws.
