(a) An assistant of yours has been criticised over a piece of assessed work that he produced for his study course for giving the definition of a non-current asset as ‘a physical asset of substantial cost, owned by the company, which will last longer than

6 Alasdair, aged 42, is single. He is considering investing in property, as he has heard that this represents a good

investment. In order to raise the funds to buy the property, he wants to extract cash from his personal company, Beezer

Limited, whose year end is 31 December.

Beezer Limited was formed on 1 May 1998 with ￡1,000 of capital issued as 1,000 ￡1 ordinary shares, and traded

until 1 January 2005 when Alasdair sold the trade and related assets. The company’s only asset is cash of

￡120,000. Alasdair wants to extract this cash from the company with the minimum amount of tax payable. He is

considering either, paying himself a dividend of ￡120,000, on 31 March 2006, after which the company would have

no assets and be wound up or, leaving the cash in the company and then liquidating the company. Costs of liquidation

of ￡5,000 would then be incurred.

Since Beezer Limited ceased trading, Alasdair has been taken on as a partner at a marketing firm, Gallus & Co. He

estimates his profit share for the year of assessment 2005/06 will be ￡30,000. He has not made any capital disposals

in the current tax year.

Alasdair wishes to reinvest the cash extracted from Beezer Limited in property but is not sure whether he should invest

directly in residential or commercial property, or do so via some form. of collective investment. He is aware that Gallus

& Co are looking to rent a new warehouse which could be bought for ￡200,000. Alasdair thinks that he may be able

to buy the warehouse himself and lease it to his firm, but only if he can borrow the additional money to buy the

property.

Alasdair has a 25% shareholding in another company, Glaikit Limited, whose year end is 31 March. The remaining

shares in this company are held by his friend, Gill. Alasdair is considering borrowing ￡15,000 from Glaikit Limited

on 1 January 2006. He does not intend to pay any interest on the loan, which is likely to be written off some time

in 2007. Alasdair does not have any connection with Glaikit Limited other than his shareholding.

Required:

(a) Advise Alasdair whether or not a dividend payment will result in a higher after-tax cash sum than the

liquidation of Beezer Limited. Assume that either the dividend would be paid on 31 March 2006 or the

liquidation would take place on 31 March 2006. (9 marks)

Assume that Beezer Limited has always paid corporation tax at or above the small companies rate of 19%

and that the tax rates and allowances for 2004/05 apply throughout this part.

Dear Mr. Brown,

Thank you for your letter of 6 September regarding Mr. John Green who has been employed by this company for the past 10 years.

Mr. Green served his apprenticeship (学徒) with Vickers Tools Ltd. in Manchester, followed by a three-year course of engineering for Production Engineers. He is technically well—qualified and for the past five years has been our Assistant Works Manager responsible for production and related business in our Sheffield factory. In all his job duties he has shown himself to be hard-working, responsible and in every way a very dependable employee.

I can strongly recommend Mr. Green as I feel sure that if he were to be chosen to manage your factory in Nairobi he would bring to his work a true atmosphere of teamwork, which would be found necessary and helpful by all who would work with him.

Sincerely yours，

Tom Smith

1. How long has Mr. Green been employed by the writer's company?

For ().

2. What kind of course did Mr. Green take?

A three-year course in engineering for ().

3. What job position has Mr. Green held in the past five years?

4.What does the writer think of Mr. Green as an employee?

He is hard-working, () and dependable.

5.What is the purpose of this letter?

To () Mr. Green to manage a factory in Nairobi.

ABC Corp. has set up the Asset Category key flexfield. It has also set up a descriptive flexfield tostore vehicle information associated with the asset category "Vehicle." Identify two correctstatements.（） (Choose two.)

A.The setting up of the descriptive flexfield is mandatory.

B.The Asset Category flexfield is owned by the Oracle Assets module.

C.The descriptive flexfield is associated with tables in the Oracle Assets module.

D.Only the Asset Category flexfield is associated with tables in the Oracle Assets module.

Do not______the watch to the relieving officer until he has verbally expressed his acknowledgment of the information which has been passed by the officer handing over．

A.turn over

B.hand over

C.hands off

D.take over

A、it was

B、it has been

C、it had been

D、it was being

A、Taxpayer owns a 10-year old Harley-Davidson motorcycle

B、Taxpayer owns a used car lot. He owns a 1962 Cadillac that is for sale on the lot

C、Taxpayer owns a notebook computer that he carries to his clients for work purposes

D、Taxpayer, a farmer, has a prize winning steer in his herd

E、None of the above items are capital assets

_____________. “And nowadays, with more and more people moving to the country, individuals want to put an exclusive finishing touch to their properties. It has been a boost to crafts like mines,”

［A］Graham has become increasingly busy, supplying flat-packed weathervanes to clients worldwide.

［B］Graham decided to concentrate his efforts on a weathervane business. He had served an apprenticeship as a precision engineer and had worked in that trade for 15 years when he and his wife, Liz, agreed to swap roles—she went out to work as an architectural assistant and he stayed at home to look after the children and build up the business.

［C］Last month, a local school was opened with his galleon ship weathervane hoisted above it.

［D］“For centuries, weathervanes have kept communities in touch with the elements, signaling those shifts in wind direction that bring about changes in the weather,” he explains.

［E］Graham has no plans for expansion, as he wants to keep the business as a rural craft.

［F］Graham has now perfected over 100 original designs. He works to very fine detail, always seeking approval for the design of the silhouette from the customer before proceeding with the hand-cutting.