Practical Question 6- Cambodia Tax On Profit

XYZ is a new company incorporated in Cambodia in 2015. Under the tax regulations, XYZ is required to calculate and pay annual Tax on Profit.

The following extracts of transactions for fixed assets in relation to the tax year ended 31 December 2016.

• On 20 January, company purchased a car of $20,000.
• On 29 April, company purchased five computers of $2,700 inclusive of 10% VAT.
• On 30 April, Purchased new computer software of $3,000.
• On 1 May, company purchased a photocopy machine of $700 excluding of 10% VAT.
• On 29 June, company purchase meeting tables of $1,000 inclusive of 10% VAT.
• On 7 July, company purchased a generator of $1,200 inclusive of 10% VAT.

The cost of building at 1 January 2015 was $500,000.

Accounting policies are as follows:

• Depreciate all fixed assets using straight line method
• Depreciation rate is 20% for all fixed assets except building is 10%.
• Proportion for depreciation expense of purchased fixed asset, and full deprecation for month fixed assets purchased.

Required:

Solve the following issues for 31 December 2016:

1. Calculate accounting depreciation for each asset.
2. Calculate Tax depreciation the following classes:

• Class 2
• Class 1
• Class 3
• Class 4

     3. Fill depreciation table as Per LOT (TOP 01/IX)