QUESTION 3 JF Sdn. Bhd (JFSB) is a company in which its main activity is holding of investments. It prepares its account to 30 April annually. The profit and loss for the year ended 30 April 2020 is as follows: Note RM000 RM1000 900,000 400,000 120,000 2 3 Gross dividends Interest income Rental income a unit of 5-storey shop house) Ad hoc tees for assisting to recommend customers to a third party company Gain on sale of investment (realised) Loss on sales of quoted securities Commission fee received 20,0 4 30,000 (60.000 40,000 1,450,000 Less: Directors' fees Salaries and allowances Audit fees Secretarial fees Repair and maintenance (for shop house) Quit rent and assessment (for shop house) Accounting fees Postage and stationery Taterest expense Brokerage for sale of investment Commission for sale of commercial land Travelling expense Approved donation Utility expense Entertainment expense Net profit 100,000 500,000 60,000 8,000 70,000 5,000 6,000 1,000 250.000 16,000 19,000 14,000 10,000 55,000 22,000 S 1,134,000 316,000 Notes: Gross dividends were derived from: Malaysian dividends (single-tier) Forei dividends A Malaysian subsidiary (dividend from exempt mcome account) Total RM 400,000 200,000 SUUUUU 900,000 2. Interest income was derived from RM An overseas subsidiary 235,000 Convertible bonds issued by a company listed on 100,000 Bursa Malaysia Fixed deposit from Maybank Bhd 65,000 Total 400,000 3. JFSB collects rentals from a 5-storey shop house without providing management services to the tenants. 4. Gain on sale of investment (realised) Sale proceeds Cost of investment Total RM 100,000 (70,000) 30,000 5. Interest expense of RM90,000 was incurred on loan being used as the working capital in a Malaysian subsidiary and the remaining RM160,000 was incurred on loan to acquire shares from Bursa Malaysia Required: 1) By referring to s60F of the Act, determine whether JFSB. is an investment bolding company. (4 maris) ii) Compute the chargeable income of JFSB for the year of assessment 2020. Note: indicate with the word 'nilor 'exempr' for item/s) which is/are tax Exempt. Show all workings. Round up all figures. . (16 maris) [Total: 20 marla] QUESTION 3 JF Sdn. Bhd (JFSB) is a company in which its main activity is holding of investments. It prepares its account to 30 April annually. The profit and loss for the year ended 30 April 2020 is as follows: Note RM000 RM1000 900,000 400,000 120,000 2 3 Gross dividends Interest income Rental income a unit of 5-storey shop house) Ad hoc tees for assisting to recommend customers to a third party company Gain on sale of investment (realised) Loss on sales of quoted securities Commission fee received 20,0 4 30,000 (60.000 40,000 1,450,000 Less: Directors' fees Salaries and allowances Audit fees Secretarial fees Repair and maintenance (for shop house) Quit rent and assessment (for shop house) Accounting fees Postage and stationery Taterest expense Brokerage for sale of investment Commission for sale of commercial land Travelling expense Approved donation Utility expense Entertainment expense Net profit 100,000 500,000 60,000 8,000 70,000 5,000 6,000 1,000 250.000 16,000 19,000 14,000 10,000 55,000 22,000 S 1,134,000 316,000 Notes: Gross dividends were derived from: Malaysian dividends (single-tier) Forei dividends A Malaysian subsidiary (dividend from exempt mcome account) Total RM 400,000 200,000 SUUUUU 900,000 2. Interest income was derived from RM An overseas subsidiary 235,000 Convertible bonds issued by a company listed on 100,000 Bursa Malaysia Fixed deposit from Maybank Bhd 65,000 Total 400,000 3. JFSB collects rentals from a 5-storey shop house without providing management services to the tenants. 4. Gain on sale of investment (realised) Sale proceeds Cost of investment Total RM 100,000 (70,000) 30,000 5. Interest expense of RM90,000 was incurred on loan being used as the working capital in a Malaysian subsidiary and the remaining RM160,000 was incurred on loan to acquire shares from Bursa Malaysia Required: 1) By referring to s60F of the Act, determine whether JFSB. is an investment bolding company. (4 maris) ii) Compute the chargeable income of JFSB for the year of assessment 2020. Note: indicate with the word 'nilor 'exempr' for item/s) which is/are tax Exempt. Show all workings. Round up all figures. . (16 maris) [Total: 20 marla]
