New User? Start here.
Error goes here
Net income is the measure or the calculation of the amount of total revenue/income that exceed total expenses.Net income also known as net profit.Net profit is calculated by subtracting expenses from the total revenue (Simanovsky 2010 p.23).
= Total revenue –Total expenses
Total Revenue is the adding of all the income coming to the business after sale of goods.
Revenue of trust includes:
Consulting income $467,000
Rental income from the investment apartment $17,000-
(Depreciation from the previous financial year of $15,600) 17,000-15,600 = $1,400
Interest on Bank deposits $1,000
Fully franked dividend from BHP $32,000
Capital gain on a commonwealth bank shares $58,000
Total Revenue = = $559,400
Body corporate fees on income producing property $ 5,000
Interests on money borrowed to purchase investment apartment $15,000
Legal expenses related from a new loan to acquire the investment apartment $ 5,500
Fees paid to a registered tax agency in May 2016 $ 1,100
New computer $7,700
New photocopier $3,300
Travel to and from work $1,000
Operating expenses including David’s salary $45,000
New motor vehicle $65,000
Trust tax loss from an earlier income year $10,000
Apartment’s chattels depreciations $15,600
Total expenses = $189,200
Net income = 559,400-189,200=$370,200
Net profit is =$370,200
Each beneficiary is allowed to get equal shares of the property of the trust. The net income is shared between David and his wife. The expense cost is divided equally among the two since they help determine the net income of the trust (Troy 2008, p.120).
Consulting income, which is $476,000 maybe, split into two each member getting $233,500.The rental income which is 17,000 will be split among the two each member getting $8,500 but the apartment had depreciated in the last financial year with a depreciation of 15,600 hence all the member will get $700 which in total is 1400 .The interest on the bank deposits split into two, will give each member $500 each. Franked dividend from the BHP divided equally in the two will give each member $16,000 and $29,000 from the capital gain in the commonwealth bank share. David and his wife income without including the expenses will get $287,500 but this amount does not include tax and the business expenses (Gibson 2009, p.89).
The expenses, which include the Body corporate fees on income producing property at $ 5,000, interests on money borrowed to purchase investment apartment at $15,000, Legal expenses related from a new loan to acquire the investment apartment at $ 5, 500, Fees paid to a registered tax agency at $ 1,100, will be split between the two owners. Not only are the profits shared equally but also the expenses. New computer at $7,700, new photocopier at $3,300, Travel expenses at $1,000, operating expenses including salary at $45,000, new motor vehicle at $65, 00, Trust tax loss from an earlier income year at $10,000 and Apartment’s chattels depreciations at $15,600 expenses will be divided equally between David and wife. Each member from the cost sharing will get $94,600.David and his wife net income is equal to $287,500-94,600=192,900.Each member will get a net income of $192,900 (Leach 2010, p.89).
Interest income from term deposits $25,800
Plastic Australia Pty Ltd $175,000
Franked 100% company profits 100%, tax paid is 30% dividend paid is 70 = 175,000 *30/70=$75,000
Commonwealth Bank of Australia ltd (CBA) $85,000
Franked at 65%= hence 65%=85000 35%=85000*30/35= $72,857.14
Dell computers Inc. $47,600
Rental from commercial shops $125,080
Total income= $521,337
Legal expenses on loan $5,800
Lease preparation costs paid to a solicitor $7,700
Interest paid on the loan $125,000
Salary paid to Mr. Chan $75,000
Total expenses= $213,500
Total income=521,337-213,500= $307,837
GST is abroad-based tax of 10% on goods and services offered by a company with a turnover of $50,000 per annum and on good sold and consumed in Australia (Troy 2008, p.90).
GST rent from commercial shops =125,080
Epstein, B. J, Bragg, N. M., & Nach, R. (2009). Wiley Gaap 2010: interpretation and application of generally accepted accounting principles p.90.
Kieso, D. E, Weygandt, J. J, & Warfield, T. D. (2011). Intermediate accounting. Vol. 1 Vol. 1. Hoboken, NJ, John Wiley & Sons.
Cch incorporated. (2008). Top accounting issues for 2009: CPE course. Chicago, CCH p.45.
Mackenzie, B., Coetsee , D., Njikizana, T., Selbst, E., Chamboko, R., Colyvas, B., & Hanekom, B. (2013). Wiley IFRS 2013: interpretation and application of international financial reporting standards p.134.
Pkf international, ltd. (2016). Wiley ifrs 2016: interpretation and application of international financial reporting standards. [Place of publication not identified], John Wiley.
Epstein, B. J., Bragg, S. M., & Nach, R. (2009). Wiley Gaap 2010: interpretation and application of generally accepted accounting principles. [includes new codification]. Hoboken, NJ, Wiley pg.197.
Dong, B. (2008). The discretionary reporting of noncontrolling interests and its association with the market assessment of credit risk p.87.
Mard, M. J., Hitchner, J. R., & Hyden, S. D. (2011). Valuation for financial reporting: fair value, business combinations, intangible assets, goodwill, and impairment analysis. Hoboken, NJ, Wiley pg. 67.
Troy, L. (2008). Almanac of business and industrial financial ratios. Chicago, IL: CCH p.68.
Leach, R. (2010). Ratios made simple: A beginner's guide to the key financial ratios. Petersfield, Hampshire: Harriman House p.134.
Gibson, C. H. (2009). Financial reporting & analysis: Using financial accounting information. Mason, OH: South-Western Cengage Learning p.g 46.
Bull, R. (2008). Financial ratios: How to use financial ratios to maximize value and success for your business. Amsterdam: Elsevier/CIMA Pub pg.234.
Albrecht, W. S. (2007). Accounting, concepts & applications. Mason, Ohio: Thomson/South-Western p.132.
Duchac, J. E., Warren, C. S., & Reeve, J. M. (2011). Accounting using Excel for success. Mason, Ohio: South-Western p.69.
A dictionary of accounting. (2010). Oxford: Oxford University Press.
Simanovsky, S. (2010). Accounting for beginners. Grandville, MI: Global Finance School p.156.
To View this & another 50000+ free samples. Please put
your valid email id.
Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.
Get Moneyinto Your Wallet
Total 10 pages, 1 USD Per Page
*The content must not be available online or in our existing Database to qualify as
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Net Income: Intermediate Accounting. Retrieved from https://myassignmenthelp.com/free-samples/net-income-intermediate-accounting.
"Net Income: Intermediate Accounting." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/net-income-intermediate-accounting.
My Assignment Help (2018) Net Income: Intermediate Accounting [Online]. Available from: https://myassignmenthelp.com/free-samples/net-income-intermediate-accounting[Accessed 22 September 2021].
My Assignment Help. 'Net Income: Intermediate Accounting' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/net-income-intermediate-accounting> accessed 22 September 2021.
My Assignment Help. Net Income: Intermediate Accounting [Internet]. My Assignment Help. 2018 [cited 22 September 2021]. Available from: https://myassignmenthelp.com/free-samples/net-income-intermediate-accounting.
The respective sample has been mail to your register email id
* $5 to be used on order value more than $50. Valid for
We have sent login details on your registered email.
Getting nightmare regarding pending chemistry assignment? Then it is high time you consider hiring chemistry assignment help service of MyAssigemnthelp.com. We at MyAssignmenthelp.com deliver quality subject specific assistance on more than 100+ subjects. For us, students' need is foremost, and we work round the clock to offer science, humanities and commerce assignment help. Among Commerce wing, our one of the most popular services is capital budgeting assignment help. In science segment, we have gained popularity with biology assignment help.
Task A: Introduction:
The term economy means the condition of a geographical location in terms of demand and supply interactions, measured in monetary terms. In simpler words, the economy of a country refers to the monetary measurements of the production activities and the financial health of the country at a point of time. These productions of goods and services are mostly accounted for and come under the domain of the rules an...
1. In the given case, in the last 12 months, Eric acquired the following assets: an antique vase (for $2,000), an antique chair (for $3,000), a painting (for $9,000), a home sound system (for $12,000), and shares in a listed company (for $5,000). The assets so acquired by him in the last week.
The Australian Superannuation System
Helping the rich save for retirement”: Does Australia’s superannuation system favour the rich compared to the poor?
Through the years, there have been constant public debates about the quantum and equity of tax concessions for superannuation. The primary arguments that surround this have been embedded on recent government budgets in the face of fiscal challenges as well as the supernatura...
Case study 1: Residence and Source
The given article is associated to the residential status of Kit and the various assessments evaluate the employment income from the salary received during his employment status in Australian-based Company and to find out whether it is taxable in nature. Although Chile is the birthplace, the various depictions made by the study have been able to show that Kit is recognised as a permanent occupant of...
Case study 1: Residence and source
The provided case study intends to identify Kit’s current residential status tax-related payments in accordance with the “IT ruling 2650 under ITAA 1997”. In compliance with the mentioned law, the income gathered from a resident of Australia must be taxed, if the individual has resided in the nation for more than 183 days. Kit is a permanent Australian occupant, although his birt...
Are you confident that you will achieve the grade? Our best Expert will help you improve your grade
BULAW5916 Taxation Law And Practice
LAWS19033 Taxation Law And Practice
HI6028 Taxation Theory Practice And Law
TLAW 303 Taxation Law
HI3042 Taxation Law
PACC6006 Taxation Law
Just refer 5 friends to earn more than $2000.
After the successfull payment you will be redirected to the detail page where you can see download full answer button over blur text.You can also download from there.
Or you can also download from My Library section once you login.Click on the My Library icon
My Library page open there you can see all your purchased sample and you can download from there.
That's our welcome gift for first time visitors
It is too easy to create or access your own library, just enter your email and make your search
MyAssignmenthelp.com stores a huge
COLLECTION OF QUESTIONS AND SAMPLES, which you can refer to any time you want.
Every time you find something useful, you can save that using the bookmark tool. From the next time,
can access that from your personalized library.
With this feature, you get to create your own collection of documents. You get free
choose and bookmark any document you wish.
Accessing the collection of documents is absolutely easy. Once you bookmark a sample,
access its content with a few clicks on your mouse.
This personalized library allows you to get faster access to the necessary documents.
longer need to spend hours to locate the sample you need.
Finding a sample from a list of thousands is nothing less than spotting a needle in a
Personalizing your own library relieves you from that stress.
On APP - grab it while it lasts!
*Offer eligible for first 3 orders ordered through app!
ONLINE TO HELP YOU 24X7
OR GET MONEY BACK!
OUT OF 33845 REVIEWS
Received my assignment before my deadline request, paper was well written. Highly