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- Keith is an employee of a real estate company. He has negotiated car benefits with his employer. Keith was provided with the car for the period 1 April 2021 to 31 March 2022. The leased car value was $36,000 on 1 April 2021, and the car had only been leased for a year at that time. Keith is required to pay for any petrol and other maintenance costs, which he has determined to be $1,600 for the period. Advise Keith's employer as to the FBT consequences (using statutory formula method) arising out of the use of the car.Arthur was seconded to work in Hong Kong since 1 April 2020 at an annual salary of $800,000. During the first six months he was provided with a two bedroom suite in a three star hotel in Wanchai until 30 September 2020. Arthur then moved to a flat in Repulse Bay and his rent was fully paid for by his employer. Calculate the rental value to be included in his assessable income for the year of assessment 2020/21. Select one: a. $72,000 b. $80,000 c. $40,000 d. $56,000Mr Lee owns a residential property in Hong Kong. During the year ended 31 March 2021, Mr Lee received the followings from the tenant: (1) Rent: $240,000 ($20,000 x 12) (2) Refundable deposit: $20,000 (3) Management fee: $12,000 ($1,000 per month). For the sake of convenience the tenant paid the management fee to the management office through Mr Lee. Based on the above information, the net assessable value of the above property for the year of assessment 2020/21 is: a. $192,000. b. $185,600. c. $201,600. d. $208,000.
- Q1) Ali wants to rent cars for her travel agency. On January 2021, Ali makes an “Ijarah Muntahia Bittamleek” contract with Modern Islamic Bank (MIB) for 8 years. MIB purchases ten (10) cars. Cost of each car is 9,200 and maintenance expenses for each car is 150 per year. Ali will pay 100 per car for each month as rental revenue. At the end of contract, MIB agrees to give cars as a gift at the end of contract period. Calculate profit/loss of SIB for this contract. Q2) Majed is interested in purchasing a factory building worth 90,000. Majed did Agreement with Modern Islamic bank to purchase the property and puts down 30% of the price as a down payment. The Bank provides the other 70% of the price. Both parties determined the rental value for the building as 300 per month as the rental value. Based on the rental value and the financing period, the bank determined fixed monthly payments as 1,500, which Majed would have to make to own the house. Required: Prepare 3rd and 4th payments for…Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters, but he makes the final decision on all rentals. He also is responsible for setting the weekly rental price of the house. During the current year, the house rents for 1,500 per week. Hassad pays a commission of 150 and a cleaning fee of 75 for each week the property is rented. During the current year, he incurs the following additional expenses related to the property: a. What is the proper tax treatment if Hassad rents the house for only 1 week (7 days) and uses it 50 days for personal purposes? b. What is the proper tax treatment if Hassad rents the house for 8 weeks (56 days) and uses it 44 days for personal purposes? c. What is the proper tax treatment if Hassad rents the house for 25 weeks (175 days) and uses it 15 days for personal purposes?Dominic owns a property in Sai Kung which was let under the following terms: I. Term: 1 January 2020 to 31 December 2020. II. Rental deposit: $16,000. III. Monthly rent: $8,000. IV. Rates: $1,000 per quarter payable by the tenant. V. Management fee: $800 per month payable by the tenant. The tenant paid rent on schedule only up to June 2020, but he continued to live in the property until December 2020. Dominic repossessed the property and applied the rental deposit against the outstanding rent. The property was let again in February 2021 at a monthly rent of $3,000. What is the net assessable value of the property for the year of assessment 2020/21?
- Question 7. Mario, who is single and elects to itemize, rents his mountain house for 210 days and uses it for personal use for 25 days during the year, not a leap year. Income and expenses associated with the property are: Rental income Mortgage interest payments Property tax payments Depreciation Utility payments Maintenance payments $ 24,000 12,000 8,000 7,000 5,000 4,000 If Mario is allowed a choice, Mario would choose to use the court approach to allocating mortgage interest and property taxes. Determine the amount of expense that Mario would deduct from AGI on his current year tax return associated with the mountain house. a) $32, 493 b) $8, 493 c) $851 d) $24,000 e) $2, 128Natasha Mutale commenced employment as an Electrical engineer with Zesco limited in Kitwe on 1 August 2022. Her basic salary was K180,000 per annum. Natasha was also entitled to the following benefits: 1. Water expenses of K700 per month for her residence were to be paid on her behalf by her employer. 2. Electricity expenses of K14,400 per annum for her residence were also to be paid by her employer. 3. A monthly non-cash voucher to be exchanged for K1,000 worth of goods from Pick and Pay stores. 4. Lunch is provided at Zesco limited employee cafeteria. The cost to the company of providing lunch was estimated at K1,600 per month 5. A re- imbursement of medical expenses incurred of K6,000 in the charge year 2022. Natasha and her family had accessed medical treatment from a private hospital in Kitwe town. She is entitled to a re-imbursement of all medical bills as long as the clinic is approved by the Human Resource department of which the clinic in question was. 6. A re- imbursement…From 1 March 2021 to 28 February 2022, employee A used her own vehicle for business purposes. She received a travelling allowance of R20 000 per month for this purpose. She travelled a total of 65 000 kilometers during the year of which 45 000 kilometers was for private travel. She kept an accurate logbook during the period she received the travel allowance. She purchased a motor vehicle for R660 000 (including VAT) on 28 February 2020. Finance charges for the current year was R105 000 and insurance was R3 500 a month, fuel was R7 000 a month and maintenance was R12 000 for the period. Do not use R, brackets, spaces, signs or decimals (unless specifically instructed) The deemed cost per kilometer is R?? (calculate to 3 decimals) Blank 1 Travel allowance for the year: Blank 2 Wear and tear: Blank 3 Finance charges: Blank 4 Insurance: Blank 5 Fuel: Blank 6 Maintenance: Blank 7 Actual cost per kilometer in Rand (calculate to 3 decimals): Blank 8 Possible deduction allowed for business…
- Sonny has paid the following gas bills in the year ended 31 December 2021: £3,000 for the 3 months ended 28 February 2021£4,500 for the 3 months ended 31 May 2021 £4,500 for the 3 months ended 31 August 2021£6,000 for the 3 months ended 30 November 2021 In March 2021 he received a bill for £6,000 for the 3 months ended 28 February 2022. What is the charge to P/L for rent for the year ended 31 December 2021? a) £24,000b) £18,000c) £20,000d) £19,000On 21 March 2019, Ben accepts an offer of employment from Vets2U Pty Ltd. His salary package includes a company car worth $45,000. On the day the car was purchased, it was also fitted with a custom-made carrier for Ben’s dog which cost $2,500. Throughout the FBT year Ben paid $65 for petrol. All other expenses on the car such as insurance, roadside assistance, maintenance, and petrol came to $2,000 and was paid for by Vets2U Pty Ltd. Ben did not keep a logbook. Vets2U Pty Ltd intends to claim input taxed credits on providing the car to Ben. Advise Vets2U Pty Ltd of the FBT payable on this Fringe Benefit for the 2020 FBT year. You must show relevant formulas and explain your calculations. (No need to refer to law)Riya writes an email promising to sell her car to Manish for $500, and Manish replies that he will pay Riya on the 24th of the month. On the 24th, Manish pays Riya and she gives him the title to the car. Manish and Riya have a(n) __________. a.) unilateral contract b.) implied contract c.) executory contract d.) executed contract