- 15 Marks
TAX – May 2018 – L2 – Q4a – Tax Administration and Enforcement
Calculate assessable profits due to a change in accounting date for Jobi Nig. Enterprises.
Question
John Obi has been running his business in the name of JOBI NIG Enterprises. He is in the business of manufacturing spare parts for vehicles in Aba. He decided to change his accounting date, which had hitherto been September 30. Some years later, the business was discontinued for lack of raw materials which he could not import from war-torn Syria. The adjusted profits of the enterprise are as follows:
| Year Ended | Profit (N) |
|---|---|
| September 30, 2007 | 840,000 |
| December 31, 2008 (15 months) | 840,000 |
| December 31, 2009 | 630,000 |
| December 31, 2010 | 540,000 |
| December 31, 2011 | 480,000 |
Required:
a. Compute the Assessable Profits for the relevant assessment years using the old basis and new basis. (15 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Assessable Profits, Basis Periods, Cessation, Change of Accounting Date
- Level: Level 2
- Topic: Taxation of Specialized Businesses
- Series: MAY 2018
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