Question $1$

Mr$.$ David Smith works for BSP Ltd and resides in Lae. His monthly salary is K$3,000.$ He declared one dependent on his tax form. In addition to his salary, Mr$.$ Smith receives the following benefits:

Accommodation provided by BSP Ltd valued at K$2,000$ per month.

Vehicle without fuel provided by the company for business and personal use.

Medical insurance coverage provided by the employer valued at K$500$ per month.

Education allowance for his child attending a private school, amounting to K$5,000$ per annum paid directly to the school by the employer.

Employer's contribution of $8\mathrm{.}4\%$ of his monthly salary to Nas fund Ltd $($a registered fund$).$

Required:

a$)$ Calculate Mr$.$ David Smith's taxable income.

b$)$ Determine the salary or wages tax payable