Kyle Lee has been managing a mini-mart store in Bishan area since 2010 and he act as a sole trading business. The following were the financial accounts drawn up to 30 November 2019. The details were as follows: Gross profit $125,200 Dividends - Singapore 2,100 1 Loss - Disposal of business van (900) 2 126,400 3 4 Expenses: Repairs Donations Entertainment Utilities Rent Salaries and wages Depreciation General provision for bad debts Miscellaneous expenses Net operating profit 13,550 1,340 16,700 8,900 12,100 42,600 9,330 1,890 17,200 5 6 2,790 Additional information: 1. The dividends were from Petri Limited received on 14 October 2019 which was one tier Singapore dividend. 2. The business van was purchased on 12 December 2017 for S$43,000 and was depreciated using S19A of 3 year allowances. The asset was sold for $5,600 cash on the last day of financial year. 3. The repairs analysis were as follows: Installation of new CCTV camera $1,200 Improvement to computer repairs $3,170 Repainting of store room $6,700 General maintenance of store $3,121 4. Donations - S$1,340 Blankets and bed sheets for Jamiyah Children's Home $990 Cash donations to National Heart Foundation - S$210; Gifts and hampers for Visually Handicapped Home - S$140 5. Salaries and wages - S$42,600 Staff salaries Part time wages for son Rahim's Salary Drawings by Rahim Part time staff wages 20,400 1,200 11,500 3,670 5,830 6. Miscellaneous expenses - S$17,200 Included in the above were the following: Fines and penalties to Traffic Police Private car expenses Transport reimbursements to staff for business $4,110 $3,330 $8,190 The Comptroller of Income Tax has agreed that the capital allowances for current year is $2,100. Other information: Kyle Lee is married and has 2 children aged 13 and 11 respectively. The spouse has an income of $3,200 for this year working as a clinic assistant in a private clinic. He has also made donations on his personal account to Sisters of the Poor, cash of $900 made on 9/7/19. He has completed National Service and was not an active NS men in the current year. Kyle's father aged 78 and mother in law aged 54 are staying in the same household as him. The family has an Indonesian maid for whom he pays a levy of $265 per month. Required: (a) Compute the adjusted profit for his sole trading business ; [10 marks); (b) Determine the chargeable income of Rahim for the year of assessment 2020; [15 marks] (c) The tax payable for Mr. Kyle for the year of assessment 2020 including the rebate capped at $200. [2 marks] Kyle Lee has been managing a mini-mart store in Bishan area since 2010 and he act as a sole trading business. The following were the financial accounts drawn up to 30 November 2019. The details were as follows: Gross profit $125,200 Dividends - Singapore 2,100 1 Loss - Disposal of business van (900) 2 126,400 3 4 Expenses: Repairs Donations Entertainment Utilities Rent Salaries and wages Depreciation General provision for bad debts Miscellaneous expenses Net operating profit 13,550 1,340 16,700 8,900 12,100 42,600 9,330 1,890 17,200 5 6 2,790 Additional information: 1. The dividends were from Petri Limited received on 14 October 2019 which was one tier Singapore dividend. 2. The business van was purchased on 12 December 2017 for S$43,000 and was depreciated using S19A of 3 year allowances. The asset was sold for $5,600 cash on the last day of financial year. 3. The repairs analysis were as follows: Installation of new CCTV camera $1,200 Improvement to computer repairs $3,170 Repainting of store room $6,700 General maintenance of store $3,121 4. Donations - S$1,340 Blankets and bed sheets for Jamiyah Children's Home $990 Cash donations to National Heart Foundation - S$210; Gifts and hampers for Visually Handicapped Home - S$140 5. Salaries and wages - S$42,600 Staff salaries Part time wages for son Rahim's Salary Drawings by Rahim Part time staff wages 20,400 1,200 11,500 3,670 5,830 6. Miscellaneous expenses - S$17,200 Included in the above were the following: Fines and penalties to Traffic Police Private car expenses Transport reimbursements to staff for business $4,110 $3,330 $8,190 The Comptroller of Income Tax has agreed that the capital allowances for current year is $2,100. Other information: Kyle Lee is married and has 2 children aged 13 and 11 respectively. The spouse has an income of $3,200 for this year working as a clinic assistant in a private clinic. He has also made donations on his personal account to Sisters of the Poor, cash of $900 made on 9/7/19. He has completed National Service and was not an active NS men in the current year. Kyle's father aged 78 and mother in law aged 54 are staying in the same household as him. The family has an Indonesian maid for whom he pays a levy of $265 per month. Required: (a) Compute the adjusted profit for his sole trading business ; [10 marks); (b) Determine the chargeable income of Rahim for the year of assessment 2020; [15 marks] (c) The tax payable for Mr. Kyle for the year of assessment 2020 including the rebate capped at $200. [2 marks]