Question 2 (20 Marks) The following is the financial statement of Bullseye Enterprise (owned by Encik Borhan) for the year ended 31 December 2020: Note RM Sales Less: cost of sales Gross profit RM 547,000.00 (65,000.00) 482,000.00 1 Add: Other income Dividend income Other income 2 38,500.00 5,000.00 525,500.00 3 4 5 6 7 Less: Expenses Staff remuneration Donations Cash losses due to theft Entertainment expenses Professional fees Purchase of second-hand lorry Miscellaneous Depreciation Provision for doubtful debts (specific) Provision for doubtful debts (general) Net profit 127,706.00 28,000.00 17,000.00 27,000.00 35,500.00 34,800.00 21,400.00 10,000.00 8,100.00 6,400.00 (315,906.00) 209.594.00 8 Notes to the financial statements: 1. Cost of sales includes provision of stock obsolescence of RM6,000.00. 2. The other income arose from a key-mans endowment policy in respect of the managing director. 3. Staff remuneration comprises salaries and EPF of Encik Borhan and his employees: Salaries (RM) EPF (RM) Encik Borhan 49,400.00 10,374.00 Normal employees 45,200.00 4,972.00 Disabled employees 16,000.00 1,760.00 Total 110,600.00 17,106.00 4. Donation are made up of cash donation of RM18,000.00 to National Library and donation of old computers to schools valued at RM10,000.00 5. Cash losses due to theft by employees. 6. Entertainment expenses comprises: Entertainment of employees of related companies Diaries without a business logo for a customer's annual dinner Promotional samples RM 13,300.00 3,500.00 10,200.00 27,000.00 7. Professional fees comprise: Audit fees Secretarial fees Legal fees on recovery of trade debts Cost of defending legal proceedings brought by former employees claiming unjust dismissal Penalty due to late payment of taxes RM 11,500.00 5,700.00 5,400.00 10,000.00 2,900.00 35.500.00 8. Miscellaneous expenses comprise: Renovation of store Extension of showroom Cost of installing a ramp to provide access for disables employees RM 8,600.00 9,800.00 3,000.00 21.400.00 9. The capital allowance for the year of assessment 2020 was RM20,600.00 and the balancing charge was RM14,000.00. PAT3053: Zakat and Tax Planning Required: Compute the statutory business income of Bullseye for the year of assessment 2020. Indicate nil? for any item(s) that does not require any adjustment [20 Marks/ Question 2 (20 Marks) The following is the financial statement of Bullseye Enterprise (owned by Encik Borhan) for the year ended 31 December 2020: Note RM Sales Less: cost of sales Gross profit RM 547,000.00 (65,000.00) 482,000.00 1 Add: Other income Dividend income Other income 2 38,500.00 5,000.00 525,500.00 3 4 5 6 7 Less: Expenses Staff remuneration Donations Cash losses due to theft Entertainment expenses Professional fees Purchase of second-hand lorry Miscellaneous Depreciation Provision for doubtful debts (specific) Provision for doubtful debts (general) Net profit 127,706.00 28,000.00 17,000.00 27,000.00 35,500.00 34,800.00 21,400.00 10,000.00 8,100.00 6,400.00 (315,906.00) 209.594.00 8 Notes to the financial statements: 1. Cost of sales includes provision of stock obsolescence of RM6,000.00. 2. The other income arose from a key-mans endowment policy in respect of the managing director. 3. Staff remuneration comprises salaries and EPF of Encik Borhan and his employees: Salaries (RM) EPF (RM) Encik Borhan 49,400.00 10,374.00 Normal employees 45,200.00 4,972.00 Disabled employees 16,000.00 1,760.00 Total 110,600.00 17,106.00 4. Donation are made up of cash donation of RM18,000.00 to National Library and donation of old computers to schools valued at RM10,000.00 5. Cash losses due to theft by employees. 6. Entertainment expenses comprises: Entertainment of employees of related companies Diaries without a business logo for a customer's annual dinner Promotional samples RM 13,300.00 3,500.00 10,200.00 27,000.00 7. Professional fees comprise: Audit fees Secretarial fees Legal fees on recovery of trade debts Cost of defending legal proceedings brought by former employees claiming unjust dismissal Penalty due to late payment of taxes RM 11,500.00 5,700.00 5,400.00 10,000.00 2,900.00 35.500.00 8. Miscellaneous expenses comprise: Renovation of store Extension of showroom Cost of installing a ramp to provide access for disables employees RM 8,600.00 9,800.00 3,000.00 21.400.00 9. The capital allowance for the year of assessment 2020 was RM20,600.00 and the balancing charge was RM14,000.00. PAT3053: Zakat and Tax Planning Required: Compute the statutory business income of Bullseye for the year of assessment 2020. Indicate nil? for any item(s) that does not require any adjustment [20 Marks/