(Answered) Question - lindemann ltd is the head company of a

Accounting

Question - Lindemann Ltd is the head company of a consolidated group and acquired all interests in Kruspe Ltd on 1 July 2016. At the time of joining, Lindemann's adjusted market value was $10 million and Kruspe's modified market value was $2 million.

Assume that Kruspe satisfied the loss transfer test and is able to transfer a $200,000 tax loss and a $10,000 net capital loss to Lindemann. Ignoring this bundle of losses, Lindemann details for 2016/17 income year is as follows;

capital gains of $140,000
capital losses of $40,000
other assessable income of $400,000
deductions of $40,000

Calculate the taxable income of Lindemann Ltd for the tax year 2016/17.

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