Lee was a businessman in Suva. He has some commercial properties in the heart of Suva which have a total worth of $6,000,000. He was survived by one son and one daughter. As per his last will, upon his death, all the property will be under a trust named Lee &Family Trust, managed by his son Lin. He will have a share of 30% in while other daughter, Lina will be having remaining shares. During the year 2019, the following are the financial transactions: • Commercial properties are rented out which generated $150,000 rent during the year • Form the business they earned $130,000 • They have investment in Pacific Company worth $145,000 and return is 3.5% per annum • For the rented property, costs incurred were: • Insurance $4,500 • Depreciation $13,000 • Local Council rate $3,000 • Security of the premises $6,000 Required: 1. Calculate Income Tax of beneficiary Lin and Lina for the financial year ended on 31st December 2020.

Lee was a businessman in Suva. He has some commercial properties in the heart of Suva which have a total worth of $6,000,000. He was survived by one son and one daughter. As per his last will, upon his death, all the property will be under a trust named Lee &Family Trust, managed by his son Lin. He will have a share of 30% in while other daughter, Lina will be having remaining shares. During the year 2019, the following are the financial transactions: • Commercial properties are rented out which generated $150,000 rent during the year • Form the business they earned $130,000 • They have investment in Pacific Company worth $145,000 and return is 3.5% per annum • For the rented property, costs incurred were: • Insurance $4,500 • Depreciation $13,000 • Local Council rate $3,000 • Security of the premises $6,000 Required: 1. Calculate Income Tax of beneficiary Lin and Lina for the financial year ended on 31st December 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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