Tax and Zakat Accounting

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Assignment (2)

Course Name: Tax and Zakat AccountingStudent’s Name:
Course Code:  ACCT 422Student’s ID Number:
Semester: FirstCRN: 12012
Academic Year: 1445 H

For Instructor’s Use only

Instructor’s Name: Khaled Almuaqel
Students’ Grade:           /15Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

  • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
  • Assignments submitted through email will not be accepted.
  • Students are advised to make their work clear and well presented; marks may be reduced for poor presentation. This includes filling your information on the cover page.
  • Students must mention question number clearly in their answer.
  • Late submission will NOT be accepted.
  • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
  • All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.
  • Submissions without this cover page will NOT be accepted.

Assignment Question(s):                                                                                           (Marks 15)

Question 1: To make income taxable, income must be realized and recognized. Explain in your own words the difference between income realization and income recognition, then provide a short numerical example to indicate the difference.                                                                  (3 Marks)

Question 2: Growth is one of the important conditions for assents to be eligible for Zakat. Using your own words, discuss the importance of growth and the reason behind requiring such rule.           (4 Marks)

Question 3: Using your own words, explain the different concepts of income from accounting, economics, and taxation perspectives.                                                                              (4 Marks)

Question 4: Abdulaziz is a Saudi citizen has submitted his zakat return including the following information for 1444 H.

a) Owns an investment building at a book value of SAR 750,000, with a market value of SAR 950,000, the investment building produced an annual revenue of SAR 500,000, and the actual total expenses incurred related to the investment building is SAR 75,000 annually.

b) Owns an investment car at a book value of 250,000 and with market value of 280,000, the car produced a monthly rental value of 25,000, actual total expenses incurred every month of getting the income is SAR 3,000.

Required: Calculate the receptacle of the zakat for each kind of zakat 1444 H.              (4 Marks)