Taxation theory practice and law

Trial Balance IV. Income Statement V. Question 2 I. Working Papers Working papers are reports that accountant use to summarize evidence found in a client records and they are used to prepare financial statements. Important Issues Noted When Preparing the Working Papers. Capitalizing on the $20,000 instant write off, the cost of Air Condition Installation will be deducted directly instead of depreciating over the years. Expenses recorded on the income statement in regards to Van and SUV are 90% and 60% the amount incurred. This is because the they are partly used for private purposes. II. Workings Papers III. 00 Union Fees 284. 00 Repair Expenses 290. 00 Account Charges 595. 00 Interest 5500. 00 Car Expenses 1890. 8868 x 49% Taxable value is the market value for the house less contribution. In this case taxable value = (800 – 100) x 4 = 2800 x 12 + 15000 = 48600 x 1.