- 11 Marks
Question
Alhaji Jimoh Abdulahi retired from public service in 2010 and went into business. His friend advised him to incorporate some companies.
The following information in respect of the companies is provided:
| Name of Company | Apex Manufacturing Co. Limited | Zenith Foods Limited | Base Nigeria Limited |
|---|---|---|---|
| Date of Commencement of Business | January 2, 2010 | January 2, 2017 | January 2, 2017 |
| Nature of Business | Manufacturing | Agriculture | Trading |
| Date of Accounts | Year ended December 31, 2018 | Year ended December 31, 2018 | Year ended December 31, 2018 |
| Revenue (N) | 990,400 | 896,400 | 900,500 |
| Total Profit (N) | 384,000 | 421,000 | 396,000 |
Required:
Compute the income tax liability of each of the companies for the relevant assessment year. Give reasons for your computations.
(11 Marks)
Answer
- Tags: Agriculture, Income Tax Liability, Manufacturing, Tax computation, Trading
- Level: Level 1
- Topic: Companies Income Tax (CIT)
- Series: NOV 2020
- Uploader: Dotse