Assume ATO AYELE, the owner of AYU BUILDING, let out (leased) the Building at Br 2,000,000 per annum. In addition to this, the lessee will incur Br 100,000 cost for repair and maintenance of the building. Assume further that Ato Ayele maintains books of Accounts and the cost of the building is Br 20,000,000 and the following expenses are incurred by the lessor:

Cost of Lease payments on Land................................	Br 100,000
Land and Building Tax.....................................................	4,800
Other Deductible Expenses...........................................	5,200

Required:

1. Determine the Gross Rental Income, Taxable Rental Income, and Rental Income Tax
2. Prepare the Rental Income Tax Return i.e., Complete the Rental Income Tax Declaration form to be filed with Tax Authority.

Answer rating: 100% (QA)

SOLUTION To determine the Gross Rental Income Taxable Rental Income and Rental Income Tax we need to ... View the full answer