（d) Explain whether or not Dovedale Ltd, Hira Ltd and Atapo Inc can register as a group fo

(b) (i) Explain the matters you should consider to determine whether capitalised development costs are

appropriately recognised; and (5 marks)

(ii) Explain whether or not Carver Ltd will become a close investment-holding company as a result of

acquiring either the office building or the share portfolio and state the relevance of becoming such a

company. (2 marks)

Halftones influence whether person behaves ethically or ethically？ Explain all relevant factors.

(d) Explain how Gloria would be taxed in the UK on the dividends paid by Bubble Inc and the capital gains tax

and inheritance tax implications of a future disposal of the shares. Clearly state, giving reasons, whether or

not the payment made to Eric is allowable for capital gains tax purposes. (9 marks)

You should assume that the rates and allowances for the tax year 2005/06 apply throughout this question.

f professional accountants and

the reputation of the accounting profession.

Required:

Explain the following practices and associated ethical risks and discuss whether current ethical guidance is

sufficient:

(a) ‘lowballing’; (5 marks)

(c) Acting as an external consultant to Semer, discuss the validity of the proposed strategy to increase gearing, and explain whether or not the estimates produced in (b) above are likely to be accurate. (10 marks)

Assume that the corporation tax rates for the financial year 2004 apply throughout.

(b) Explain the corporation tax (CT) and value added tax (VAT) issues that Irroy should be aware of, if she

proceeds with her proposal for the Irish subsidiary, Green Limited. Your answer should clearly identify those

factors which will determine whether or not Green Limited is considered UK resident or Irish resident and

the tax implications of each alternative situation.

You need not repeat points that are common to each situation. (16 marks)

vernment because it depends on so many different things:

whether the man is married; how many children he has; whether he supports any relations, how much interest he receives, how much he has spent on his house during the year, and so on. All this makes it Diffhcult to decide exactly how much the tax is, There was an artist who was always very careful to pay the proper amount.

One year, after posting his check as usual, he began to wonder if he had paid enough, and after a lot of work, with a pencil and paper, he found that he had not. He thought that he owed the government something.

He was just writing another check to send it to the tax collector when the postman dropped a letter into the box at the front door. Opening it, the artist was surprised to find inside it a check for five pounds from the tax collector. The offhcial explained that too much had been paid, and that therefore the difference was now returned to the taxpayer.

1.According to the passage, to decide theexact amount of tax to be paid is ().

A.simple

B.easy

C.difficult

D.interesting

2.The word“proper" in the second paragraph means ().

A.small

B.big

C.right

D.wrong

3.After a lot of work, the artist thought that he had paid the government, ().

A.less tax than he should have

B.more tax than he should have

C.as much tax as usual

D.just enough tax

4.Why did the tax collector send a letter to the artist？

A.To send him a new tax form.

B.To return the money overpaid.

C.To remind him of paying the tax.

D.To explain the rules of tax paying.

解释以下说法正确与否:（1)如果一家企业的拥有者不给自己支付工资，则会计成本为零，而经济成本为

解释以下说法正确与否:

(1)如果一家企业的拥有者不给自己支付工资，则会计成本为零，而经济成本为正。

(2)会计利润为正的企业不一定经济利润也为正。

(3)企业雇佣了一些目前处于失业状态的工人，则其使用这些工人服务的机会成本为零。

Please explain whether the following staleness are true or false.

a. If the owner of a business pays himself no salary , then the accounting cost is zero, but the economic cost is positive.

b. A firm that has positive accounting profit does not necessarily have positive economic profit.

c. If a firm hires a currently unemployed worker, the opportunity cost of utilizing the worker' s services is zero.

needs to prepare its budget for the coming year and is trying to decide whether to launch the product at a price of $30 or $35 per unit. The following information has been obtained from market research:

Notes

1 Variable production costs would be $12 per unit for production volumes up to and including 100,000 units each year. However, if production exceeds 100,000 units each year, the variable production cost per unit would fall to $11 for all units produced.

2 Advertising costs would be $900,000 per annum at a selling price of $30 and $970,000 per annum at a price of $35.

3 Fixed production costs would be $450,000 per annum.

Required:

(a) Calculate each of the six possible profit outcomes which could arise for Gam Co in the coming year. (8 marks)

(b) Calculate the expected value of profit for each of the two price options and recommend, on this basis, which option Gam Co would choose. (3 marks)

(c) Briefly explain the maximin decision rule and identify which price should be chosen by management if they use this rule to decide which price should be charged. (3 marks)

(d) Discuss the factors which may give rise to uncertainty when setting budgets. (6 marks)