Business Studies Year 2

Assignment 1 24 Marks Due Friday 06 th Sept. 5pm

Question 1

Tax on K 1,276 = K 213.46

Tax on K 524 (x 0.35) = K 183.40
Tax on K 1,800 = K 396.86
Less: Rebate (2dpts) = K 28.85
Net tax = K 368.01

Question 2

F/N salary = K 725.00

Less: Rebate (3dpts) = K 33.97
Net Salary = K 691.03

Question 3

Sales Revenue K 20,000

Add: Wages income K 9,000
Government pension 6,000 15,000
Gross Income K 35,000
Less: Exempt Income
Government pension 6,000
Assessable Income K 29,000
Less: Allowable deductions
Purchase of stock 6,000
Less: Takings on Robbery 8,500
Depreciation on Equipment 1,600 16,100
Taxable Income K 12,900

Question 4

F/N Salary = K 3,500

Tax on K 3,500 (x 0.42) = K 1,470
(no declaration lodged)
Net Pay = K 2,030
Question 5

Compute fortnight take home pay for the following. Use 2019 tax table C

Tax Payer Lodge Declaration Dependent Fort Night Tax Net Pay
Or Not

A Yes 3 K 2500 K 601.48 K 1,898.52

B Not 2 K 3000 K 1,260 K 1,740

C Yes 0 K2150 K 478.98 K 1,671.02

Show out your Calculation

A.

Tax on K 1,276 = K 213.46

Tax on K 1,224 (x 0.35) = K 428.40
Tax on K 2,500 = K 641.86
Less: Rebate (3dpts) = K 40.38
Net tax = K 601.48
Net Pay (K 2,500 – K 601.48) = K 1,898.52

B.

Tax on K 3,000 (x 0.35) = K 1,260

(no declaration lodged)
Net Pay (K 3,000 – K1, 260) = K 1,740

C.

Tax on K 1,276 = K 213.46

Tax on K 874 (x 0.35) = K 305.90
Tax on K 2,150 = K 519.36
Less: Rebate (3dpts) = K 40.38
Net tax = K 478.98
Net Pay (K 2,150 – K 478.98) = K 1,671.02

Question 6

F/N Salary = K 648.00

Less: Rebate (2dpts) = K 26.32
Net Pay = K 621.68
Question 7

Salary K 1,500
Overtime 5hrs x K 11 K 55
Commission 52 107
Plus: Assessable benefits at prescribed rates
Car with fuel 125
Housing 160 285
Plus: Other assessable benefits & Allowances
Telephone allowance 15
Club membership (600/26) 23.08 38.08
Total taxable Salary or Wages K 1,930.08
*Calculated tax (using table C)
Tax on K 1, 276 = K 213.46
Tax on K 654.08 (x 0.35) = K 228.93
Tax on K 1,930.08 = K 442.39
Less: Rebate (2dpts) = K 28.85
Net tax = K 413.54

A. Final Tax after rebates = K 413.54

B. Net Pay (K 1,930.08 – K 413.54) = K 1,516.54

Name: Malcolm Tumana

ID#: 180148
Course: BS217 - Taxation 1
Class: BS2-B