Encik Daniel started working as the Finance Manager at Home Dining Bhd on 1^st July 2011. On 31^st December 2019, due to some reasons (not ill health), his employment was terminated by Home Dining Bhd. He was paid a gratuity of RM40,000 and a compensation for loss of employment amounting RM102,000. In 2019, Encik Daniel is 49 years old.

Other payments and benefits received by Encik Daniel from his employer in the year 2019 were as follows:

(a)

Salaries (per month) RM4,000;

(b)

Bonus, equivalent to three months' salary;

(c)

Medical bills of RM2,500 paid by the employer;

(d)

Costs of leave passage, paid by the employer;

RM

(i)to Australia

2,400

(ii)to Langkawi

400

(iii)to Sabah

1,000

(e)

Entertainment allowance were RM1,500 monthly. On the entertainment allowance received, Encik Daniel actually spent RM7,500 in 2019 to entertain clients.

(f)

A car (Toyota) was provided by the employer. The car was purchased in 2014 at a cost of RM89,000. Encik Daniel used the car until 30^th September 2019.

(g)

Accommodation:

(i)

An unfurnished house was provided since 2015 until 30^th September 2019. The monthly rent of RM1,200 were paid by the employer.

(ii)

From 1^st October 2019 until 31^st December 2019 Encik Daniel stayed in a hotel where all of the following expenses were provided by the employer:

RM

Hotel room rate

6,200

Food at the hotel

2,200

Taxi fares from the hotel to Home Dining Bhd

1,200

(iii)

For the house provided by Home Dining Bhd, Encik Daniel was required to pay RM100 per month to his employer.

Required:

Compute adjusted income for Encik Daniel for the relevant year of assessment.

(24 marks)