- 12 Marks
Question
a. Mr. Kayode Oluwa, a civil engineer, worked for XYZ Nigeria Limited for many years. He retired as the Chief Civil Engineer in 2010. He registered his enterprise under the name of Kayode Oluwa Enterprises and commenced business in 2011.
He appointed you as his tax consultant and submitted his financial records showing the following results:
| Year Ended December 31 | Amount (N) |
|---|---|
| 2015 | 1,360,000 |
| 2016 | (1,900,000) |
| 2017 | 2,300,000 |
| 2018 | 2,700,000 |
Required:
Compute the assessable profit/(loss) for the relevant years of assessment. (12 Marks)
Answer
| Year of Assessment | Profit/(Loss) (N) |
|---|---|
| 2015 | 1,360,000 |
| 2016 | (1,900,000) |
| 2017 | 2,300,000 |
| 2018 | 2,700,000 |
The assessable profits or losses for each year are calculated as per the financial records submitted by Mr. Kayode Oluwa. The carry forward of any losses to subsequent years may apply depending on tax law provisions for loss relief.
- Topic: Taxation of Partnerships and Sole Proprietorships
- Series: NOV 2020
- Uploader: Dotse