An entity has revalued its property and has recognized the increase in the revaluation reserve in its financial statements. The carrying value of the property was GHS8 million, and the revalued amount was GHS10 million. Tax base of the property was GHS6 million. In the country, the tax rate applicable to profits is 35% and the tax rate applicable to profits made on the sale of property is 30%. Where will the tax liability be recognized and at what amount?a.In equity at GHS1.2 million.b.In statement of recognized income and expense at GHS1.4 million.c.In retained earnings at GHS700,000.d.In the income statement at GHS600,000.Clear my choice

An entity purchased property for $6 million on 1 July 20X3. The land element of the purchase was $1 million. The expected life of the building was 50 years and its residual value nil. On 30 June 20X5 the property was revalued to $7 million, of which the land element was $1.24 million and the buildings $5.76 million. On 30 June 20X7, the property was sold for $6.8 million. What is the gain on disposal of the property that would be reported in the statement of profit or loss for the year to 30 June 20X7? A Gain $40,000 B Loss $200,000 C Gain $1,000,000 D Gain $1,240,000

A tax liability is created upon the sale of an asset whenever:Select one:a.the firm is profitable.b.the asset has been partially depreciated.c.the corporation keeps two sets of books.d.the asset's market value exceeds its book value.Clear my choice

The following information is provided for Able Ltd:Taxable income for the year is $400,000There was an increase in deferred tax asset for the year of $80,000There was a decrease in deferred tax liability for the year of $30,000There was a gain on revaluation of plant (before tax) of $90,000Tax rate is 30%What is the income tax expense of Able Ltd for the year in accordance with the requirements of AASB112 Income Taxes?

In the previous year, SAM Ltd had made a tax loss of $60,000 for which it had recognized a deferred tax asset. The taxable profit for the current year before recoupment of tax loss is $250,000. SAM Ltd had claimed exempt income of $40,000 in calculating its current taxable profit. Ignore all other temporary differences. Tax rate is 30%. What is the current tax liability of SAM Ltd after recoupment of the tax loss?Group of answer choices$69,000$39,000$75,000$12,000

A property project produces an after-tax return of 8.5% on total funds invested. The investor can borrow funds for this project at 7.5% and the investor’s marginal tax rate is 35.5%. Assuming an LVR (loan to value ratio) of 70%, the after-tax return on equity is: a. 17.05% b. 19.44% c. 9.05% d. 12.78% e. 21.34%