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Allowance for Mining, Prospecting, Agriculture and Forest

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Which is not a qualifying mining expenditure?

a)

on the acquisition of the mine or rights in or over the mine

b)

on searching for, on discovering and testing or on winning access to deposits of minerals

c)

on the construction of any works or buildings which, when the mine ceases to be worked

d)

cost of buildings

2.

If the residual expenditure is more than the recovered expenditure, the excess is allowed as a deduction from the gross income in arriving the adjusted income of mining.

a)

True

b)

False

3.

The prospector may claim prospecting expenditure as when it was incurred in the year assessment or an amount equal to so much of the qualifying prospecting expenditure as was incurred before, but not more than 15 years before, the end of the basis year for the relevant year’.

a)

True

b)

False

4.

Qualifying prospecting expenditure is expenditure wholly and exclusively incurred in searching for, discovering or winning access to deposits of minerals in an eligible area or in testing any such deposits.

a)

True

b)

False

5.

What expenditure would not be considered as Qualifying Agriculture Expenditure?

a)

Clearing and preparing of land

b)

Construction on a farm of a building

c)

Cost of plant and machinery used in farm

d)

New planting

6.

What is the rate for construction of any other building?

a)

50%

b)

10%

c)

20%

d)

30%

7.

In order to claim the agriculture allowance, the person must be the owner and the Qualifying Agriculture Expenditure is in used at the end of the basis period.

a)

True

b)

False

8.

What is the meaning of agriculture?

a)

Any form that may relate only with farming or biological asset

b)

Any form of cultivation of crops, animal farming, aquaculture, inland fishing and any other agriculture or pastoral pursuit

c)

None of the above

d)

a and b

9.

What is the increased initial allowance rate if the building was treated as industrial building?

a)

40%

b)

20%

c)

10%

d)

30%

10.

How many per cent the allowances on expenditure incurred on building used for the welfare of employees, or as living accommodation for a person, employed in or in connection with such extraction?

a)

20%

b)

12%

c)

10%

d)

15%

11.

If the relevant building is used by the employees who are directors or management, administrative or clerical staff of the business, the election is considered

a)

Applicable

b)

Not Applicable

12.

The formula for amount of forest charge is the amount of forest allowances made for each year of assessment minus with permanent cessation.

a)

True

b)

False