The paper "Kangaroo Avionics Pty Company Financial Analysis " is a perfect example of a finance and accounting case study. Kangaroo avionics Pty Company is an Australian resident company that is registered for GST purposes. The company is therefore entitled to pay tax on their income which has been derived from all sources. Taxable Income of the Company Land bought was $900, 000 exclusive of GST Construction cost was $2, 650, 000 Cost of buying a computer software programme is $5, 500 Company’ s ordinary income (1.643(a)-3(b) (1)) for the year ending 2009 was $4,400,000 Deductible expenses were $3, 000,000 Total expenses of the company are $900, 000 +$2, 650, 000+$5, 500= $3, 555, 500 Other deductible expenses of the company are $3, 000, 000 total expenses are $6, 555,500 The total ordinary income of the company for the year is $4, 400, 000 It, therefore, means that the company incurred a loss of $2, 155,500 Since the company incurred a loss at the end of the financial year there was no taxable income. RYAN’ S TAXABLE INCOME Ryan’ s taxable income will be calculated on all his income including his share in the company.
Since there were two shareholders in the company and the company incurred a loss, the loss will be divided into two and thus Ryan’ s share will be $1,777,500 His other incomes include the property which he acquired from his grandfather who acquired it from his mother.
The total gains from the property are The initial price of the property was $300 000 on first June 1980 and $400, 000 on 20th September 1985, the gain was $100, 000 Ryan acquired the property when it was coasting $700 000 which means he had a gain of $300, 000 The land was abandoned and therefore depreciated to $500 000, the value of depreciation was 200, 000, he also incurred an expense of $10, 000 He sold the property on 1st June 2009 for $900, 000 His ordinary income were $40 000 and deductible expenses were $30, 000 Capital gains from the property are $900, 000-$700, 000=$200, 000 Add ordinary income which is $40, 000 (1.643(a)-3(b)(1)) Total deductions are $30, 000+$10, 000+$20, 000=$60, 000 His statutory taxable income (sec 42) is $240, 000-$60, 000=$180, 000
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