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@curiousmeerkat said:
I had the three different production levels on the right hand side (350,000 bags, 280,000 bags and 200,000 bags), and the three different weather conditions along the top.The contribution per bag was $5. Depending on the amount produced and the weather, I basically did (Production x $5) – (Difference between Production and Demand x $0.50), as if they weren’t sold it cost $0.50 to be scrapped.
That’s what I put, I hope it is right as I’d like the 8 marks!
I think the bags which weren’t sold had to be multiplied by £0.50 (disposal cost) + £4.00 variable cost, so $4.50 as not even that the business would recover
@curiousmeerkat said:
Bits I can remember:Question 1
I disallowed 15% of the lease costs of the car as the CO2 was greater than 160g/km. I also disallowed her parking fines as they were payments contrary to public etc (although mentioned that they are normally allowable when your employee incurs them, rather than yourself). I disallowed her apartment costs, the accountancy fees for inheritance tax planning, the gifts to customers (greater than £50 per donee per year), the champagne, and the political donations. I didn’t do anything with the impairment loss recovered, as I figures since she has written it off before, and now has it, it should be taxable.
I only included one of her bonuses as the other became eligible in a previous tax year. She had no personal allowance as her income was way over £112,950.
I worked out the new guy’s NIC at 11%, and the employer’s contributions at 12.8% after the lower limit when he was employed. As a partner I deducted from the profits the two months from before he joined, worked out the 20%, then worked out his class 4 contributions and class 2 contributions.
I can’t remember much more of the question.
@curiousmeerkat said:
Bits I can remember:Question 1
I disallowed 15% of the lease costs of the car as the CO2 was greater than 160g/km. I also disallowed her parking fines as they were payments contrary to public etc (although mentioned that they are normally allowable when your employee incurs them, rather than yourself). I disallowed her apartment costs, the accountancy fees for inheritance tax planning, the gifts to customers (greater than £50 per donee per year), the champagne, and the political donations. I didn’t do anything with the impairment loss recovered, as I figures since she has written it off before, and now has it, it should be taxable.
I only included one of her bonuses as the other became eligible in a previous tax year. She had no personal allowance as her income was way over £112,950.
I worked out the new guy’s NIC at 11%, and the employer’s contributions at 12.8% after the lower limit when he was employed. As a partner I deducted from the profits the two months from before he joined, worked out the 20%, then worked out his class 4 contributions and class 2 contributions.
I can’t remember much more of the question.
I agree with you, I did exactly the same, my only mistake was subtracting the £2,800 which had been written off.
Question 2 specially could raise some panic if you had already spent more time than you had expected on question 1. Overall the exam was of a fair difficulty but in order to get all questions answered you needed to be quick as in a professional level quick. Good luck to everyone.
