Question 3.3 (a):
What is Kartoons' taxable income? Show your workings. (5 marks)
Question 3.3 (b):
How much tax does the company have to pay? (3 marks)
Question 3.3 (c):
To what extent does the design of Australia’s company income tax system reflect the core principles of good tax design (that is: efficiency, equity and simplicity)?
Question 3.2 (a):
Describe two potential problems that may arise from the process described above.
Question 3.2 (b):
Recommend two ways that the internal controls for the receipt of inventory could be strengthened