Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. David has served as a Finance Officer since 1 May 2014. He receives monthly benefits, which include a salary of RM4,200, a travelling allowance

Mr. David has served as a Finance Officer since 1 May 2014. He receives monthly benefits, which include a salary of RM4,200, a travelling allowance of RM800 and an entertainment allowance of RM400. On 1 March 2022, he was promoted to Branch Manager and received the following remuneration and benefits:

1. A monthly salary of RM8,400. 2. A monthly travelling allowance of RM1,600. 3. A monthly entertainment allowance of RM800. 4. The company temporarily accommodated him at Hilton Hotel since his promotion date, incurring a cost of RM200 per night. On 11 April 2022, he moved into a fully furnished house provided by the company. The monthly rental rate for the house is RM6,000, including a furniture rental cost of RM1,000 per month. For the house provided, Mr David was responsible for his electricity and water bills, which amounted to RM4,000 in 2022. 5. The company also provided Mr David, a housekeeper and a gardener, for which the company pays monthly salaries of RM1,200 and RM1,000, respectively. 6. Mr David is provided with a corporate membership to a recreational club, for which the company incurs a monthly fee of RM150. 7. The company also provided him with a mobile phone and a registered phone line under the companys name. The company pays Mr Davids telephone bills for the year 2022, totalling RM2,000. 8. Starting on 1 June 2022, the company provided Mr David with a car and driver, for which the company pays a monthly salary of RM1,300. The company purchased the car in March 2014 for RM125,000. 9. In September 2022, the company paid for his and his wifes holiday fares to the London, United Kingdom. The expenses incurred included a flight ticket cost of RM7,000, a meal cost of RM2,500, and an accommodation cost of RM5,800. 10. In October 2022, he had an accident and received treatment at Swan Medical Center. The company has incurred a treatment cost of RM15,000. 11. Mr David spent RM10,000 to entertain clients and RM20,000 on travelling expenses related to his official duties.

Required: Calculate Mr Davids statutory employment income for the year of assessment 2022.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Actuarial Science

Authors: John James Hardy

1st Edition

1332733697, 978-1332733699

More Books

Students also viewed these Accounting questions

Question

What are the steps in the T&D process?

Answered: 1 week ago

Question

Define training and development.

Answered: 1 week ago