ACCT 2410 TAXATION I MARCH SEMESTER 2019 INDIVIDUALASSIGNMENT (5%) SUBMISSION DATE:21.5.2019 Oblectives geability of income for an individual (C4) putation for an individual taxpayer (C3) CLO3: Prepare tax com Question Jason and his friend, Lara are runing a partnership business since year 2017. The business capital were contributed by them and each at contribute RM 100,000 each with 10% interest on capital to be paid off at the end of the year. Apart of that, Jason and Lara were agreed to share the profit and loss equally. The 2018 business income and expenses of the business are given as below Remarks Turnover Cost of sales Sales and distribution costs Salaries and wages 2,500,000 1,125,000 290,000 94,000The expense includes monthly salary paid to Jason and Lara for RM8,000 each per month They also has a cashier who is disabled and being paid for RM1.200 per month 69,000 Two months bonus for all staff inclusive Jason and 62,780 EPF was paid for al staff including Jason and Lara 18,000 Approved and qualify for double deduction Bonus at 11% each. Staff training costs | Fully payable to Jason and Lara with 50% for 10,000 Travelling allowance Entertainment allowance Water and electricity charges business purposes Fully payable to Jason and Lara with 80% for business purposes 15,000 19,980 All are incurred for business purposes 150,000 Assets qualified as Qualifying Plant Expenu ture Office Equipinent QPE) for tax purposes Rental is for yearly rental of business premise 56,000 20,000 Rental of premise | Company is allocating 5% for the purpose of participating in the International Trade Fair 2018 that will be held in Kuala Lumpur on 10 December 2018 Marketing expense | 2% from the total turnover will be donated to an approved centre whereas the balance is meant for the business use 15,000 Miscellaneous expense Jason also brought in into their business his own car which had been acquired in year 2015 at the cost of RM65,000. The market value of the van in year 2018 is recorded at RM26,000. The business is also bought a new car costing RM105,000 to be used by Jason in the business. The car was bought under hire-purchase arrangement in which an amount of RM1,800 is paid on monthly basis for 5 years. Deposit of 10% was paid on 1 March 2018. During the year 2018, Lara also earns the following income: Rental income of RM40,000 from her own condominium at Sri Hartamas, Kuala Lumpur. She also incurred RM500 for the quit rent and assessment; RM2,500 for the maintenance; and RM5,000 for the new kitchen cabinet. Dividend of 10% from ner investment in unit trust of Public Mutual. Her total net investment is RM10,000 The company also made a cash donation of RM2,000 to the earthquake victims. Apart of that, Jason and Lara also made a personal donation of RM500 each to Cancer Foundation in Malaysia Required: Prepare the Statement of Profit or Loss for the year ended 31 December 2018. Show all workings i. Compute the total income for the partneship iiCompute the income tax payable for Jason and Lara. Show all workings. iv. Fill up the tax return form for Jason and Lara. v. Advice Jason and Lara on how they can minimize their tax liability. You may give any TWO (2) relevant strategies with relevant arguments. Trial ncome ACCT 2410 TAXATION I MARCH SEMESTER 2019 INDIVIDUALASSIGNMENT (5%) SUBMISSION DATE:21.5.2019 Oblectives geability of income for an individual (C4) putation for an individual taxpayer (C3) CLO3: Prepare tax com Question Jason and his friend, Lara are runing a partnership business since year 2017. The business capital were contributed by them and each at contribute RM 100,000 each with 10% interest on capital to be paid off at the end of the year. Apart of that, Jason and Lara were agreed to share the profit and loss equally. The 2018 business income and expenses of the business are given as below Remarks Turnover Cost of sales Sales and distribution costs Salaries and wages 2,500,000 1,125,000 290,000 94,000The expense includes monthly salary paid to Jason and Lara for RM8,000 each per month They also has a cashier who is disabled and being paid for RM1.200 per month 69,000 Two months bonus for all staff inclusive Jason and 62,780 EPF was paid for al staff including Jason and Lara 18,000 Approved and qualify for double deduction Bonus at 11% each. Staff training costs | Fully payable to Jason and Lara with 50% for 10,000 Travelling allowance Entertainment allowance Water and electricity charges business purposes Fully payable to Jason and Lara with 80% for business purposes 15,000 19,980 All are incurred for business purposes 150,000 Assets qualified as Qualifying Plant Expenu ture Office Equipinent QPE) for tax purposes Rental is for yearly rental of business premise 56,000 20,000 Rental of premise | Company is allocating 5% for the purpose of participating in the International Trade Fair 2018 that will be held in Kuala Lumpur on 10 December 2018 Marketing expense | 2% from the total turnover will be donated to an approved centre whereas the balance is meant for the business use 15,000 Miscellaneous expense Jason also brought in into their business his own car which had been acquired in year 2015 at the cost of RM65,000. The market value of the van in year 2018 is recorded at RM26,000. The business is also bought a new car costing RM105,000 to be used by Jason in the business. The car was bought under hire-purchase arrangement in which an amount of RM1,800 is paid on monthly basis for 5 years. Deposit of 10% was paid on 1 March 2018. During the year 2018, Lara also earns the following income: Rental income of RM40,000 from her own condominium at Sri Hartamas, Kuala Lumpur. She also incurred RM500 for the quit rent and assessment; RM2,500 for the maintenance; and RM5,000 for the new kitchen cabinet. Dividend of 10% from ner investment in unit trust of Public Mutual. Her total net investment is RM10,000 The company also made a cash donation of RM2,000 to the earthquake victims. Apart of that, Jason and Lara also made a personal donation of RM500 each to Cancer Foundation in Malaysia Required: Prepare the Statement of Profit or Loss for the year ended 31 December 2018. Show all workings i. Compute the total income for the partneship iiCompute the income tax payable for Jason and Lara. Show all workings. iv. Fill up the tax return form for Jason and Lara. v. Advice Jason and Lara on how they can minimize their tax liability. You may give any TWO (2) relevant strategies with relevant arguments. Trial ncome