SECTION A

John Wong owns and operates, Wong's & Family Supercenter, a supermarket in Barbican St$.$

Andrew. He supplies you, his accountant with the following details of income for the year of

assessment $2019$:

Wong's & Family

Gross Profit

Less: Expenses

General Expenses

Property tax

Electricity

Water rates

Telephone

Depreciation

Trade License

Donations

Penalties and Interest

Salaries

Net Profit

NOTES:

i$.$ General expenses include $$3,000$ per week which Mr$.$ Wong charges as his remuneration

for serving in the business and $$4,000$ per week for a domestic helper. The helper

devotes one half of her services to the supermarket.

ii$.$ Mr$.$ Wong and his family live in an apartment above the business premises. It is

considered that the portions of the expenses applicable to their private use of the premises

are:

Taxes $-$ one$-$half

Electricity $-$ one$-$half

Water rates $-$ two$-$thirds

Telephone $-$ one$-$fourth

iii. Donations $-$ were made to: a Barbican Women's Football Club in the amount of $$4,000.$

Also, a donation was made to an approved charitable institution in the amount of

$$12,000.$

iv$.$ Salaries includes $$125,000$ for John's son. The Commissioner General will regard $50\%$

as commensurate with service rendered by his son to the business.

Capital allowance on the assets used in the business amounted to $$48,000$ for the year.

Required:

Compute his Income Tax Liability for the year of assessment $2019,$ writing appropriate notes.

$($Total $20$ mks $)$