1 (CLO 3:C3) Khairul Amin runs KAS Enterprise since 2017, the capital contribution contributed by him until 3J December 2020 are RM 500,000. He presented his business income statement for the year ended 31 December 2020 as follows: KAS Enterprise Statement of Comprehensive Income for year ended 31 December 2020 Notes RM Sales (-) Cost of sale Gross profit RM 5,500,000 (3,750,000) 1,750,000 (-) Expenses Salary and EPF 1. 160,560 Freight and insurance 2. 230 000 Utility 183,000 Professional fee 57,000 Depreciation 3. 22,000 Zakat 4. 30,000 Donation 5. 80,000 (762,560) Net profit 987,440 Note: 1. The amount includes: Salary [RM] EPF [RM] Khairul Amin Employee 72,000 8,640 66,000 13,920 2. Freight and insurance include: Life insurance for Khairul Amin RM 4,000 Life insurance for employee RM 30,000 Insurance for van used for business RM 6.000 Insurance company for imported cargo by Malaysia insurance RM 190,000 3. Capital allowance for year assessment 2020 are RM 25,000 and unabsorbed capital allowance from year assessment 2019 are RM 5,000. 4. Zakat is paid based on business income. 5. Donation include: Cash donation to public library Cash donation to approved institution RM 23,000 RM 57,000 6. Khairul Amin is married with Sofea (fully housewife), they have two children Hana and Umar, aged below 8. Their second child is special need child who is attending special need school. Previously, Khairul Amin was married with Alya (a teacher), and they have three children together, Khalisa, Kalya and Kamal. The following are information about his child: a. Khalisa, 21 years old, is pursuing an engineering degree at Monash University on government scholarship worth RM 18,000 a year. Khairul Amin is given full custody by court for Khalisa. Khairul Amin incurred RM5,000 on Khalisa's expenses for the year 2020. b. Kalya, 19 years old is pursuing an accounting degree at University Utara Malaysia. Alya is given full custody by the court for Kalya. Khairul Amin and Alya incurred RM 5,000 and RM 8,000, respectively on Kayla's expenses. c. Kamal 18 years old, is pursuing a Diploma in culinary arts at the Korean's Culinary Institute in Seoul, Korea. Khairul Amin and Alya incurred RM 6,000 and RM 10,000, respectively on Kamal's expenses. You are required to: i. Calculate tax payable for En. Khairul Amin for year assessment 2020 [24 marks] ii. If on January 2020, En. Khairul Amin change his KAS Enterprise from business enterprise to a company (KAS Sdn Bhd) with paid up capital RM 500,000, calculate tax payable for En. Khairul Amin as a manager of KA Sdn Bhd and tax payable of KA Sdn Bhd. [24 marks] iii. Based on your calculation above, should En Khairul Amin change his business from business enterprise to company? [2 marks]