Mr Chen, a PRC citizen, leased out his property in Hong Kong under the following terms: Lease period: two years from 1 April 2020 The rent is $ 45,000 per month Initial premium of $ 96,000, payable on signing the lease agreement Rental deposit: $90,000, payable on signing the lease agreement, which will be used to compensate any loss of revenue when the tenant defaults in payment. In addition, the following expenses are paid by Mr Chen: (i) The property agency fee was $9,500, paid on the signing of the lease (ii) The residential property needed to be renovated before it could be lease out. The renovation cost of $50,000 is incurred (iii)Bank mortgage interest is $7,500 per month Additional information: Rates per quarter are $2,500 and payable by the tenant. Required: (a) With reference to the territorial principle, advise Mr Chen, a PRC citizen, if his rental income is subject to Hong Kong property tax. (b) Prepared a schedule to compute Mr Chen's property tax liability for the years of assessment 2020/2021 (ignore provisional tax). (c) Explain the tax treatment on expense item (i), (ii) and (iii). Mr Chen, a PRC citizen, leased out his property in Hong Kong under the following terms: Lease period: two years from 1 April 2020 The rent is $ 45,000 per month Initial premium of $ 96,000, payable on signing the lease agreement Rental deposit: $90,000, payable on signing the lease agreement, which will be used to compensate any loss of revenue when the tenant defaults in payment. In addition, the following expenses are paid by Mr Chen: (i) The property agency fee was $9,500, paid on the signing of the lease (ii) The residential property needed to be renovated before it could be lease out. The renovation cost of $50,000 is incurred (iii)Bank mortgage interest is $7,500 per month Additional information: Rates per quarter are $2,500 and payable by the tenant. Required: (a) With reference to the territorial principle, advise Mr Chen, a PRC citizen, if his rental income is subject to Hong Kong property tax. (b) Prepared a schedule to compute Mr Chen's property tax liability for the years of assessment 2020/2021 (ignore provisional tax). (c) Explain the tax treatment on expense item (i), (ii) and (iii)