Q1)

ABC (S) Pte Ltd, incorporated in 2010, is in the business of manufacturing toys. For the year ended 31 December 2020, the company recorded a net profit before tax of $500,000 after taking into consideration some of the following income and expense items:

Income Interest income received from DBS Bank in Singapore	$ 1,000
Net dividend remitted from Country A, where the headline tax rate is 30%	$ 700
Expenses Depreciation charged for the year	$150,000
Traffic fines	$500
Staff salary	$320,000

The company purchased a delivery van costing $65,000 during the year.

The dividend income is:

A. Exempt from tax in Singapore.

B. Taxable at gross of $1,000 in Singapore.

C. Taxable at net of $700 in Singapore.

D. None of the above.

The disallowed expenses for deduction are:

A. Depreciation.

B. Staff salary.

C. Traffic fines.

D. Depreciation and traffic fines.

The Adjusted Trading Profit for ABC (S) Pte Ltd for the Year of Assessment 2021 is

A. $648,800 B. $649,800

C. $650.800

D. $648,300

The capital allowances to be claimed by ABC (S) Pte Ltd for the Year of Assessment 2021

A. $65,000

B. $21,667

C. $13,000

D. None of the above.

Assume that the chargeable income of ABC (S) Pte Ltd for the Year of Assessment 2021 is $300,000 before exempt income, the net tax payable will be

A. $33,575

B. $29,750

C. $25,075

D. None of the above.