Answered: Ascertain the value of the taxable…

Business

Accounting

Ascertain the value of the taxable benefit for Year of Assessment 2022.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 38P

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Concept explainers

Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.

Question

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Kelvin was provided with a partially furnished accommodation when he commenced employment with XYZ (Singapore) Pte Ltd in 2020. He contributed $2,400 towards the total rent paid by his employer of $66,000 for year 2021. The annual value of the property is $48,000. Ascertain the value of the taxable benefit for Year of Assessment 2022.

Group of answer choices

a) $63,600

b) $64,800

c) $66,000

d) $67,200

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