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Mr. Mohammed and his wife are both resident Jordanian natural persons. His spouse is working. After preparing the income tax return for Mr. Mohammed for

Mr. Mohammed and his wife are both resident Jordanian natural persons. His spouse is working. After preparing the income tax return for Mr. Mohammed for the year 2020, answer the below questions based on the following information:

  • Gross Income from agricultural activity equals JD 5,000,000, where its net income is JD 3,200,000
  • Gross Income from professional service activity (Financial consulting provided to software bank company) equals JD 250,000, where its allowable expense equals JD 60,000
  • Mr. Mohammed paid the following amounts in 2020, JD 2,200 educational expenses for his first son, JD 1,750 educational expenses for his second son, JD 1,000 medical expenses for his daughter, JD 3,000 for his accommodation rent and JD 1,322 medical expenses for him.
  • Mr. Mohammed donated JD 36,000 to governmental and JD 60,000 to non-governmental organizations.

  1. The net taxable income sources from agricultural activity for the year 2020 equals: ABCD

a. 680,000

b. 2,560,000

c. 2,720,000

d. None of the above

  1. The total net income from all taxable sources for the year 2020 equals: ABCD

a. 870,000

b. 2,910,000

c. 2,942,000

d. None of the above

  1. The amount of income tax due for the year 2020 equals: ABCD

a. 769,500

b. 775,500

c. 739,500

d. None of the above

  1. The amount of tax balance for the year of 2020 equals: ABCD

a. 768,000

b. 727,000

c. 12,500

d. None of the above

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