a. The following were extracted from the books of Edum Republic for the year ended...
a. The following were extracted from the books of Edum Republic for the year ended 31/12/2021:
$ | |
| Receipts from oil and gas | 522,500,000 |
| Import duties | 250,000,000 |
| Export duties | 180,500,000 |
Receipts from agriculture | 60,000,000 |
| Permit and license fees | 92,000,000 |
| Personal and other income taxes | 230,500,000 |
| Miscellaneous income | 100,500,000 |
Additional information:
(i) The country is structured intosix(6) Regions/States A, B, C, D, E, F
(ii) The population of each of the Regions/States are:
A: 400,000 B: 350,000 C: 250,000
D: 100,000 E: 300,000 F: 200,000
(iii) Revenue is shared 30% to the Federal/Central government, 10% to education trust fund 60% to be shared by the Regions/States on the basis of population.
You are required to compute:
The total revenue for the country for the year 2021
b. The following were extracted from the books of Edum Republic for the year ended 31/12/2021:
$ | |
| Receipts from oil and gas | 522,500,000 |
| Import duties | 250,000,000 |
| Export duties | 180,500,000 |
Receipts from agriculture | 60,000,000 |
| Permit and license fees | 92,000,000 |
| Personal and other income taxes | 230,500,000 |
| Miscellaneous income | 100,500,000 |
Additional information:
(i) The country is structured intosix(6) Regions/States A, B, C, D, E, F
(ii) The population of each of the Regions/States are:
A: 400,000 B: 350,000 C: 250,000
D: 100,000 E: 300,000 F: 200,000
(iii) Revenue is shared 30% to the Federal/Central government, 10% to education trust fund 60% to be shared by the Regions/States on the basis of population.
You are required to compute:
Revenue for the Federal/Central government for the year 2021
c. The following were extracted from the books of Edum Republic for the year ended 31/12/2021:
$ | |
| Receipts from oil and gas | 522,500,000 |
| Import duties | 250,000,000 |
| Export duties | 180,500,000 |
Receipts from agriculture | 60,000,000 |
| Permit and license fees | 92,000,000 |
| Personal and other income taxes | 230,500,000 |
| Miscellaneous income | 100,500,000 |
Additional information:
(i) The country is structured intosix(6) Regions/States A, B, C, D, E, F
(ii) The population of each of the Regions/States are:
A: 400,000 B: 350,000 C: 250,000
D: 100,000 E: 300,000 F: 200,000
(iii) Revenue is shared 30% to the Federal/Central government, 10% to education trust fund 60% to be shared by the Regions/States on the basis of population.
You are required to compute:
Revenue for the Regions/Statecollectively andindividually for the year 2021.
Explanation
a.
Total revenue = 522,500,000 + 60,000,000 + 92,000,000 + 230,000,000 + 100,500,000 + 250,000,000 + 180,500,000
= $1,436,000,000
b.
30% of Total revenue
=\(\frac{30}{100}\times 1,436,000,000\)
= $430,800,000
c.
Revenue for the regions/states \(=\frac{60}{100} \times 1,436,000,000
= $861,600,000
\(A=\frac{400000}{1600000}\times 861600000\)
= $215,400,000
\(B=\frac{350000}{1600000}\times 861600000\)
= $188,475,000
\(C=\frac{250000}{1600000}\times 861600000\)
= $53,850,000
\(E=\frac{300000}{1600000}\times 861600000\)
= $161,550,000
\(F=\frac{200000}{1600000}\times 861600000\)
= $107,700,000
10% to Education Trust Fund = \(\frac{10}{100}\times 1436000000\)
= $143,600,000
| Region/State | Population basis |
| A | 215400000 |
| B | 188475000 |
| C | 134625000 |
| D | 53850000 |
| E | 161550000 |
| F | 107700000 |
| 861600000 |