this is taxation 1

There are 48 monthly instalments commencing from March 2016. In addition, the costs of road tax and insurance was RM3,100. The original cost of the car when new was RM300,000. Continued... YYYINRS 1/10 BAC2674 12 OCTOBER 2017 TAXATION 1 b) Peter and Jane are partners in an accounting firm in Malaysia. The terms of their partnership agreement are as follows: Profits and losses Annual salary: Peter : Jane Annual interest on capital contribution - Peter Shared equally (50:50) RM44,000 RM54,000 RM9,000 For the year ended 31 December 2016, the partnership had provisional adjusted income of RM240,000 and was entitled to capital allowances of RM10,000 for assets used in the business. During the year 2016, the partnership paid a private expense on behalf of Jane of RM5,000. In addition to the partnership business, Peter and Jane have the following other sources of income: (1) Peter has a sole proprietor business in Malaysia which generated an adjusted loss of RM2,000 for the year of assessment 2016. (2) Jane derives rental income from a Malaysian property which she holds for investment purposes. In the year of assessment 2016, Jane's rental income (net of allowable expenses) was RM10,000. Both Peter and Jane are unmarried and Malaysian citizens, but Jane has not been resident in Malaysia since 2013. Required: Compute the divisible income of the partnership and the charger ble income of Peter and Jane respectively for the year of assessment 2016. (10 marks) [Total: 20 marks) Continued... YYY/NRS 3/10