Taxation Law Question free essay sample

Part 2Advise Crowbar Ltd as to which value of closing stock it should choose at 30 June 2010 on the basis that the company wishes to minimise its taxable income. Would your answer be different if Crowbar Ltd had carry-forward losses from a prior income year? Part 3 What difference would it make to your answer if Crowbar Ltd had an average annual turnover over the previous 4 years of $800,000? Part 1: As Crowbar Ltd has remaining stock on hand at the year-end, it is necessary for the company to take into account any unsold trading stock which is held by the taxpayer at the time as stated under Section 70-35 of ITAA 1997. Trading stock provisions allow a deduction for the cost of stock that is actually sold. Under Section 70-35(2), ITAA97, where the value of the closing stock at the end of the year exceeds the value of the opening stock at the beginning of the year, the difference is assessable income. We will write a custom essay sample on Taxation Law Question or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Furthermore under s70-35(3), where the value of the opening stock exceeds the value of the closing stock, the difference is a deduction. Part 2: It is in the best interest for Crowbar to select a method of stock valuation that minimises its taxable income. Under Section 70-45(1), ITAA (1997) 31(1), the taxpayer has the option to value trading stock on hand at the end of the year either cost price, market selling value, replacement price or as stated under s70-50, ITAA (1997) {31(2)}, a lower value in special circumstances if commissioner is satisfied. Crowbar Ltd Unit of StockValuation MethodLowest Cost ($) ACost Price$10,000 BMarket Selling Value$2,000 CReplacement Price$7,000 Total$19,000 Opening Stock Unit A + B + C -$48,000 Stock Value-$19,000 Claim Deductions $29,000 If Crowbar Ltd had carry-forward losses from a prior income year: In this situation, it is advisable for Crowbar Ltd to maximise the value of its closing stock. For companies with carry-forward losses, it can offset those losses against its income for the current year. Crowbar Ltd (with Carry-Forward Losses) Unit of StockValuation MethodLowest Cost ($) AMarket Selling Value$14,000 BCost Price$10,000 CMarket Selling Value$18,000 Total$42,000 Part 3 What difference does it make to your answer if Crowbar Ltd had an average annual turnover over the previous 4 years of $800000? An entity that is carrying on a business that has an annual turnover of less than $2 million s328-110 of ITAA 1997 is considered a small business entity therefore it shows that Crowbar Ltd is a small business entity as it has an average annual turnover of $800000 in the 4 previous years. This leads to meeting the criteria under Section 328-285(1) where you can choose not to account for changes in the value of your trading stock for an income year and the difference between the value of your trading stock on hand at the start of an income year and the reasonably estimated value at the end of the income year is not more than $5,000. Crowbar Ltd can choose replacement cost at end of the year, which is 11,000 + 3,000 + 7,000 = 21000. The difference between opening which is $48,000 and end which is $21,000 is $27,000 which more than 5,000. Therefore Crowbar Ltd needs to: * Value each item of trading stock on hand at the end of the income year, or * Â  Account for any change in the value of trading stock on hand. * If a SBE taxpayer chooses to account for changes in the value of trading stock for an income year, the taxpayer will have to do a stocktake and account for changes in the value of trading stock.

Writing a Sample Extended Response Essay For the GED

Writing a Sample Extended Response Essay For the GEDWriting a sample extended response essay for the General Education Diploma or GED is usually a very simple process. A lot of schools will also supply you with an essay sample and so it should be the same.For many students, the written work is too much and they require some guidance in the form of a sample response essay. The sample is not meant to imitate someone you see in a magazine and on television, but rather a sample extension response essay for the GED test. Students want a response that is unique to them.The sample essay should be representative of your personality and the style you are best at writing. It must be interesting and reflective. The use of statistics, concrete examples and generalizing examples are all helpful in making your responses compelling. Your final written work must not be littered with adverbs and excessive use of nouns.In preparing for the GED essay exam your chosen choice of writing sample will be an extension of the writing style you choose for your other writing assignments. This essay writing sample will serve as a mirror to reflect back on to help you get an understanding of your own writing and style. Not only will this enable you to prepare a much better response but you will also be able to keep the consistency of your writing from one course to the next.Most students don't consider using a sample essay for their GED test because they fear they may look boring or repetitive. This can happen, but you can avoid it. Many students don't find anything about their writing odd or repetitive and this will help you avoid this common issue.When you select your essay writing sample, make sure it is easy to read and also easy to understand. Because many students have trouble reading long essays, most writing samples are shorter and will accommodate this. It doesn't make sense to write an essay on the Moon landing if you have never been to the moon and don't know if the moon exists.U sing your essay writing sample will give you a firm base for the beginning of your response essay. It will help you improve your writing and also helps you identify your writing style. This is a very powerful tool that will help you if you need to improve your essay writing to pass your test.You can prepare for this test by using a sample response, which makes it easier for you to learn how to write a response essay on your own. It's a great idea to use a sample of another student's response, or take a class for it.