Homework
A). Depreciation rates used in financial accounting shall not be used in tax accounting whereas tax law gives tax credits to tax payers by using accelerated depreciation rates for some groups of assets
Required: State depreciation rates under the Article 17 of the Saudi Income.
B). The paragraph (e) in the article 17 of the Saudi income tax explained how depreciation expense is calculated for any group of assets.
Required:
a) Discuss In Detail This Article
b) Give a numerical example explaining the applicability of the paragraph (e) in the article 17 of the Saudi income tax.
C) Resident Bank fully owned by Sweden investors has the following selecteditems drawn from its accounting books (Amounts in Saudi Riyal)
|
Account
|
Amount
|
Deductible
|
Non-deductible
|
|
Allowance For Loan Losses
|
840,000
|
|
|
|
Employees' share in retirement fund.
|
190,000
|
|
|
|
Bad debt (written off)
|
18,340
|
|
|
|
Donations to the Help the Poor Organization (non-licensed in Saudi)
|
11,350
|
|
|
|
Depreciation for New computers purchased to be used on research and development
|
35,100
|
|
|
|
Old employees' reunion party expenses
|
3,000
|
|
|
|
Bank' share in retirement fund within the limit in the law.
|
145,000
|
|
|
|
Loss on denoted assets
|
8,000
|
|
|
|
Income tax paid to tax and zakat authority
|
150,000
|
|
|
Required: check mark items in the table below either deductible or non-deductible under income tax law in the kingdom.
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.