Fadama, a sole trader started business on 1/ 4/ 2013 and keeps accounts to 31st March each year. She presents the following results of operations for assessment:Year to 31/3/2014 - GH¢480,000; Year to 31/3/2015-GH¢560,000; Year to 31/3/2016-GH¢400,000; Year to 31/3/2017-GH¢520,000. What was her chargeable income for the 2016 year of assessment? A. GH¢100,000 B. GH¢480,000 C. GH¢430,000 D. GH¢490,000
Question
Fadama, a sole trader started business on 1/ 4/ 2013 and keeps accounts to 31st March each year. She presents the following results of operations for assessment:Year to 31/3/2014 - GH¢480,000; Year to 31/3/2015-GH¢560,000; Year to 31/3/2016-GH¢400,000; Year to 31/3/2017-GH¢520,000. What was her chargeable income for the 2016 year of assessment? A. GH¢100,000 B. GH¢480,000 C. GH¢430,000 D. GH¢490,000
Solution
To calculate Fadama's chargeable income for the 2016 year of assessment, we need to determine the difference between her income for the year and any allowable deductions.
From the given information, Fadama's income for the year to 31/3/2016 was GH¢400,000. However, we do not have any information about her allowable deductions for that year. Allowable deductions could include expenses related to the business, such as rent, utilities, salaries, and other operating costs.
Without knowing the amount of allowable deductions, we cannot accurately calculate Fadama's chargeable income for the 2016 year of assessment. Therefore, we cannot determine the correct answer from the options provided (A. GH¢100,000, B. GH¢480,000, C. GH¢430,000, D. GH¢490,000).
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