pathfinder - The Institute of Chartered Accountants of Nigeria

PATHFINDERQUESTION 2(a)Zeem Limited is a manufacturing company which commenced business on1 June 2003 the adjusted profits for the relevant years of assessment are asfollows:NPeriod ended 31/12/2003 21,000Year ended 31/12/2004 72,000Year ended 31/12/2005 54,000Year ended 31/12/2006 28,800Required:Assuming the company took advantage of the option open to it to minimize its taxliability, compute the assessable profits for all relevant years of assessment.(8 marks)(b)Abdulahi Nigeria Limited had been preparing its accounts to 30 June every yearuntil year 2000 when a decision was taken that accounts for 6 months shouldbe prepared to 31 December 2000 and thereafter, yearly.Adjusted ProfitsNYear ended 30 June 2000 240,000Period ended 31 December 2000 180,000Year ended 31 December 2001 280,000Year ended 31 December 2002 320,000You are required to compute the assessments for the relevant years ofassessment.(7 marks)(Total 15 marks)INTERMEDIATE EXAMINATION - NOVEMBER 201061