July 29, 2021

Claimable capital deductions

Kalamuka Maize Millers Limited purchased a building on 1 January 2005, for Sh.4,000,000. It was brought into use on the same day. The sellers construction cost […]
July 29, 2021

Economic conditions

Because of economic conditions, a firm reports that 30 percent of its accounts receivables from other business firms are overdue. The firm’s policy is that if […]
July 29, 2021

Qualifying expenditure for the purposes of investment deductions

(a) What is meant by the term qualifying expenditure? ( 2 marks) (b) Name and briefly explain items which may be included in the qualifying expenditure […]
July 29, 2021

lowest probability that the store will sell

Mia Shillings Department Stores has compiled the following data concerning its daily sales. The sales for each day of the week are normally distributed with the […]
July 29, 2021

Random variable of interest

Mia Shillings Department Stores is planning to open a store in Washington DC. It has asked the Superior Marketing Company (SMC) to do a market study […]
July 29, 2021

Determining whether there is a difference in percentage salary increase

The table below reports the annual net salary amounts for an accountant who began employment with an auditing firm in 1995. In addition, the value of […]
July 29, 2021

Course of action recommendable for SAF

SAF is a manufacturer of military hardware. Shown below is a simplified projected income statement for its small arms division. SAF Small Arms Division Income Statement […]
July 29, 2021

Computing the total VAT payable

Saika Co. Ltd. a manufacturer, purchases raw materials at Sh.1,000,000. The company then incurs conversion costs which are estimated at 40% of material cost. The profit […]
July 29, 2021

value added tax (VAT)

(i) Give a brief definition of value added tax (VAT). ( 2 marks) (ii) Explain in numbered paragraph the case for and against VAT in your […]
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