(ii) The property of the former administrative centre of Tyre is owned by the company. Tyr

第1题

Which of the following is／are adjustment(s) to the basis of property after the initial

Which of the following is／are adjustment（s) to the basis of property after the initial

Which of the following is/are adjustment(s) to the basis of property after the initial basis is determined？()I. Add the costs of protecting ownership of the property.II. Add the expenditures for painting the company name on the property.III. Subtract the capital recovery resulting from collections for easements.IV. Subtract the capital recovery resulting from depreciation deductions.

A、Only statement IV is correct

B、Only statements I and III are correct

C、Only statements III and IV are correct

D、Only Statements II, and IV are correct

E、Statements I, II, III, and IV are correct

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第2题

Which of the following exchanges of property are like－kind exchanges？I.Convenience stor

Which of the following exchanges of property are like-kind exchanges？

I.Convenience store owner trades several cases of potato chips for a cash register.

II.A completely rented apartment building traded for a parts supply warehouse to use in business.()

A、Only statement I is correct

B、Only statement II is correct

C、Both statements are correct

D、Neither statement is correct.

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第3题

Which of the following statements related to the Section 179 election to expense is （a

Which of the following statements related to the Section 179 election to expense is (are) true？

I.A Section 179 deduction can be claimed on tangible personal property

II.A Section 179 deduction can be claimed on property held for the production of income.

III.A Section 179 deduction can be claimed on real property.

IV.A Section 179 deduction is allowed only for assets used in trade or business.()

A、Only statement I and II are true

B、Only statements I, II, and III are true

C、Only statements I and IV are true

D、All of the statements are true

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第4题

Which of the following qualifies as a like－kind exchange of property？（)I. Registered trademark for a copyright.II. A 2009 Chevy, business－use automobile for a 2010 Ford, business－use automobile.

A、Only statement I is correct

B、Only statement II is correct

C、Both statements are correct

D、Neither statement is correct

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第5题

（ii) Compute the annual income tax saving from your recommendation in （i) above as compare

(ii) Compute the annual income tax saving from your recommendation in (i) above as compared with the

situation where Cindy retains both the property and the shares. Identify any other tax implications

arising from your recommendation. Your answer should consider all relevant taxes. (3 marks)

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第6题

（b) Using the information contained in Appendix 1.1, discuss the financial performance of

(b) Using the information contained in Appendix 1.1, discuss the financial performance of HLP and MAS,

incorporating details of the following in your discussion:

(i) Overall client fees (total and per consultation)

(ii) Advisory protection scheme consultation ‘utilisation levels’ for both property and commercial clients

(iii) Cost/expense levels. (10 marks)

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第7题

Which of the following qualifies as a like－kind exchange of propertyI.Commercial retail

Which of the following qualifies as a like-kind exchange of property

I.Commercial retail building and its land for an office building and its land.

II.Louisiana Oil, Inc.common stock for Louisiana Oil, Inc.corporate bonds.()

A、Only statement I is correct

B、Only statement II is correct

C、Both statements are correct

D、Neither statement is correct

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第8题

（a) A director of Enca, a public listed company, has expressed concerns about the accounti

(a) A director of Enca, a public listed company, has expressed concerns about the accounting treatment of some of the company’s items of property, plant and equipment which have increased in value. His main concern is that the statement of financial position does not show the true value of assets which have increased in value and that this ‘undervaluation’ is compounded by having to charge depreciation on these assets, which also reduces reported profit. He argues that this does not make economic sense.

Required:

Respond to the director’s concerns by summarising the principal requirements of IAS 16 Property, Plant and Equipment in relation to the revaluation of property, plant and equipment, including its subsequent treatment.

(b) The following details relate to two items of property, plant and equipment (A and B) owned by Delta which are depreciated on a straight-line basis with no estimated residual value:

（a) A director of Enca, a public listed company, h

At 31 March 2014 item A was still in use, but item B was sold (on that date) for $70 million.

Note: Delta makes an annual transfer from its revaluation surplus to retained earnings in respect of excess depreciation.

Required:

Prepare extracts from:

(i) Delta’s statements of profit or loss for the years ended 31 March 2013 and 2014 in respect of charges (expenses) related to property, plant and equipment;

(ii) Delta’s statements of financial position as at 31 March 2013 and 2014 for the carrying amount of property, plant and equipment and the revaluation surplus.

The following mark allocation is provided as guidance for this requirement:

(i) 5 marks

(ii) 5 marks (10 marks)

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第9题

（c) In October 2004, Volcan commenced the development of a site in a valley of ‘outstandin

(c) In October 2004, Volcan commenced the development of a site in a valley of ‘outstanding natural beauty’ on

which to build a retail ‘megastore’ and warehouse in late 2005. Local government planning permission for the

development, which was received in April 2005, requires that three 100-year-old trees within the valley be

preserved and the surrounding valley be restored in 2006. Additions to property, plant and equipment during

the year include $4·4 million for the estimated cost of site restoration. This estimate includes a provision of

$0·4 million for the relocation of the 100-year-old trees.

In March 2005 the trees were chopped down to make way for a car park. A fine of $20,000 per tree was paid

to the local government in May 2005. (7 marks)

Required:

For each of the above issues:

(i) comment on the matters that you should consider; and

(ii) state the audit evidence that you should expect to find,

in undertaking your review of the audit working papers and financial statements of Volcan for the year ended

31 March 2005.

NOTE: The mark allocation is shown against each of the three issues.

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第10题

1 Alvaro Pelorus is 47 years old and married to Maria. The couple have two children, Vito

and Sophie, aged 22 and

19 years respectively. Alvaro and Maria have lived in the country of Koruba since 1982. On 1 July 2005 the family

moved to the UK to be near Alvaro’s father, Ray, who was very ill. Alvaro and Maria are UK resident, but not ordinarily

resident in the tax years 2005/06 and 2006/07. They are both domiciled in the country of Koruba.

On 1 February 2007 Ray Pelorus died. He was UK domiciled, having lived in the UK for the whole of his life. For the

purposes of inheritance tax, his death estate consisted of UK assets, valued at ￡870,000 after deduction of all

available reliefs, and a house in the country of Pacifica valued at ￡94,000. The executors of Ray’s estate have paid

Pacifican inheritance tax of ￡1,800 and legal fees of ￡7,700 in respect of the sale of the Pacifican house. Ray left

the whole of his estate to Alvaro.

Ray had made two gifts during his lifetime:

(i) 1 May 2003: He gave Alvaro 95 acres of farm land situated in the UK. The market value of the land was

￡245,000, although its agricultural value was only ￡120,000. Ray had acquired the land on

1 January 1996 and granted an agricultural tenancy on that date. Alvaro continues to own the

land as at today’s date and it is still subject to the agricultural tenancy.

(ii) 1 August 2005: He gave Alvaro 6,000 shares valued at ￡183,000 in Pinger Ltd, a UK resident trading

company. Gift relief was claimed in respect of this gift. Ray had acquired 14,000 shares in

Pinger Ltd on 1 April 1997 for ￡54,600.

You may assume that Alvaro is a higher rate taxpayer for the tax years 2005/06 and 2006/07. In 2006/07 he made

the following disposals of assets:

(i) On 1 July 2006 he sold the 6,000 shares in Pinger Ltd for ￡228,000.

(ii) On 1 September 2006 he sold 2,350 shares in Lapis Inc, a company resident in Koruba, for ￡8,270. Alvaro

had purchased 5,500 shares in the company on 1 September 2002 for ￡25,950.

(iii) On 1 December 2006 he transferred shares with a market value of ￡74,000 in Quad plc, a UK quoted company,

to a UK resident discretionary trust for the benefit of Vito and Sophie. Alvaro had purchased these shares on

1 January 2006 for ￡59,500.

Alvaro has not made any other transfers of value for the purposes of UK inheritance tax. He owns the family house

in the UK as well as shares in UK and Koruban companies and commercial rental property in the country of Koruba.

Maria has not made any transfers of value for the purposes of UK inheritance tax. Her only significant asset is the

family home in the country of Koruba.

Alvaro and his family expect to return to their home in the country of Koruba in October 2007 once Ray’s affairs have

been settled. There is no double taxation agreement between the UK and Koruba.

Required:

(a) Calculate the inheritance tax (IHT) payable as a result of the death of Ray Pelorus. Explain the availability

or otherwise of agricultural property relief and business property relief on the two lifetime gifts made by Ray.

(8 marks)

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（ii) The property of the former administrative centre of Tyre is owned by the company. Tyr