Mr Tevita is originally from Labasa and moved to Suva in 2009. He had a parental...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Mr Tevita is originally from Labasa and moved to Suva in 2009. He had a parental property there which he sold and bought a house (House A) in suburb in Suva back 2010. He stays there with his wife and two young kids. He had also bought another house (House B) in January 2013. The acquisition cost of new was $260 000. He spent $15000 to upgrade the house. This new house has two flats. This new property (House B) is a concrete house. In December 2018, Mr Tevita decided to sell his House B due to some financial difficulties. He was asking for $700 000 but finally, deal settled to $650 000. He had to pay commission to real-estate agent $20000. He also had to pay legal fee $3500 and stamp duty $2500. In Fiji, Capital Gain Tax is 10%. Depreciation for a concrete house is 2.5%. Required: Calculate Mr Tevita's Net Capital Gain and calculate his Capital Gain Tax payable on the sale of the house. (5 marks) Mr Zhu is Director - Marking and Customer Relations in a five-star resort based in Mana Island. The resort is very popular among Asian nationals. Mr Zhu is originally from Singapore, have worked in Auckland and now working with the resort for the last two years. He is entitled to cash and non-cash benefits. Details of the benefits are as follows: Cash Benefit: • Salary -$148 000 • Motor vehicle allowance - $9.000 Mr Zhu has one kid who is studying in a popular school in Nadi. The resort pays for school fee which is $4 500 per annum. Non cash benefits: • Household personal fringe benefits $15 000 annual • The Resort has provided a furnished house. Rent is $1 800 per month. • He is entitled to $ 100-week meal allowance. This meal is provided in the resorts' restaurant. • The resort has also provided him a car. The engine capacity of the car is 2000 CC. Tax details for car allowances are below: Engine Capacity Under 1,800cc 1,800cc and <2,000cc 2,000cc and above Value for each Quarter (VEP Amount) $656 $778 $958 He is also entitled to personal expenditure fringe benefits. He gets $500 per month for personal expenditure Required: Calculate the value of the net fringe benefit, gross fringe benefit and FBT payable Mr Chand, a very renowned retired professor from a local university and entrepreneur, has commercial and residential properties in Suva and Nadi area. Mr Chand is happily married with two kids. After receiving some advices from his friend and considering an emerging trend in neighbouring countries like Australia and New Zealand, he decided to make a trust. This trust will look after all the properties upon his death. As per his will, wife Maria will get 40% of the share while son Prasad and daughter Ayana will get equal share in the net profit. Mr Chand died in 2016. During the financial year 2018, the followings are financial transactions: • Commercial properties are rented out which generated $360 000 rent during the year • From the residential properties they earned $100 000 Mr Chand had some deposits in Westpac worth $200 000, and the return is 4.5% annual • Mr Chand had 50 000 shares in a Fiji based organisation. The organisation has declared $0.22 per share as dividend • For the commercial rented property, the costs incurred were: > Insurance $6 000 Depreciation $22 000 Local council rates $2 800 ➤ Leasing costs $9 000 Security of the premises $11 000 ➤ Fine by local council $5 500 Required: Calculated Income Tax for each beneficiary for the financial year 2018. (10 marks) Mr Tevita is originally from Labasa and moved to Suva in 2009. He had a parental property there which he sold and bought a house (House A) in suburb in Suva back 2010. He stays there with his wife and two young kids. He had also bought another house (House B) in January 2013. The acquisition cost of new was $260 000. He spent $15000 to upgrade the house. This new house has two flats. This new property (House B) is a concrete house. In December 2018, Mr Tevita decided to sell his House B due to some financial difficulties. He was asking for $700 000 but finally, deal settled to $650 000. He had to pay commission to real-estate agent $20000. He also had to pay legal fee $3500 and stamp duty $2500. In Fiji, Capital Gain Tax is 10%. Depreciation for a concrete house is 2.5%. Required: Calculate Mr Tevita's Net Capital Gain and calculate his Capital Gain Tax payable on the sale of the house. (5 marks) Mr Zhu is Director - Marking and Customer Relations in a five-star resort based in Mana Island. The resort is very popular among Asian nationals. Mr Zhu is originally from Singapore, have worked in Auckland and now working with the resort for the last two years. He is entitled to cash and non-cash benefits. Details of the benefits are as follows: Cash Benefit: • Salary -$148 000 • Motor vehicle allowance - $9.000 Mr Zhu has one kid who is studying in a popular school in Nadi. The resort pays for school fee which is $4 500 per annum. Non cash benefits: • Household personal fringe benefits $15 000 annual • The Resort has provided a furnished house. Rent is $1 800 per month. • He is entitled to $ 100-week meal allowance. This meal is provided in the resorts' restaurant. • The resort has also provided him a car. The engine capacity of the car is 2000 CC. Tax details for car allowances are below: Engine Capacity Under 1,800cc 1,800cc and <2,000cc 2,000cc and above Value for each Quarter (VEP Amount) $656 $778 $958 He is also entitled to personal expenditure fringe benefits. He gets $500 per month for personal expenditure Required: Calculate the value of the net fringe benefit, gross fringe benefit and FBT payable Mr Chand, a very renowned retired professor from a local university and entrepreneur, has commercial and residential properties in Suva and Nadi area. Mr Chand is happily married with two kids. After receiving some advices from his friend and considering an emerging trend in neighbouring countries like Australia and New Zealand, he decided to make a trust. This trust will look after all the properties upon his death. As per his will, wife Maria will get 40% of the share while son Prasad and daughter Ayana will get equal share in the net profit. Mr Chand died in 2016. During the financial year 2018, the followings are financial transactions: • Commercial properties are rented out which generated $360 000 rent during the year • From the residential properties they earned $100 000 Mr Chand had some deposits in Westpac worth $200 000, and the return is 4.5% annual • Mr Chand had 50 000 shares in a Fiji based organisation. The organisation has declared $0.22 per share as dividend • For the commercial rented property, the costs incurred were: > Insurance $6 000 Depreciation $22 000 Local council rates $2 800 ➤ Leasing costs $9 000 Security of the premises $11 000 ➤ Fine by local council $5 500 Required: Calculated Income Tax for each beneficiary for the financial year 2018. (10 marks)
Expert Answer:
Answer rating: 100% (QA)
Question 1 5 marks Mr Tevitas Capital Gain on sale of House B Acquisition cost of House B in Jan 2013 260000 Upgrades spent on House B 15000 Total cos... View the full answer
Related Book For
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt
Posted Date:
Students also viewed these accounting questions
-
In recording the acquisition cost of an entire business goodwill is recorded as the excess of cost over the fair value of identifiable net assets. assets are recorded at the seller's book values....
-
The acquisition cost of inventory remaining at the end of a period is measured using LIFO, FIFO, or average cost. a. Rank cost of goods sold, gross profit, and ending inventory from highest to lowest...
-
How does a company determine the acquisition cost of an asset when it acquires the asset in exchange for securities?
-
Automobiles air bags are filled via the decomposition of sodium azide, according to the following equation: 2 NaN3 (s) 2 Na (s) +3 N2 (g) Calculate the work (in L atm) when 2.25 g of sodium azide...
-
What are two situations in which most economists view a budget deficit as justifiable?
-
Find the product. (x + 1)(x + 1)(x - 1)(x - 1)
-
An observatory has a telescope that requires an initial investment of $\$ 25,000$. A benefactor will provide a $\$ 7,500$ gift every 5 years as long as the university makes the telescope available to...
-
The following schedule of capital assets was obtained from the records of the city of Elmcreek: City of Elmcreek Schedule of General Fixed Assets December 31, 2018 Governmental activities: Land. . ....
-
what extent does cultural context shape the sources and manifestations of inspiration across diverse societies and historical epochs ?
-
This case requires students to consider the merits of activity-based costing in an altered production environment. It also deals with behavioural and organisational culture issues. The Tankmaster...
-
Your company plans to produce a new product, a wireless computer mouse. Two machines can be used to make the mouse, Machines A and B. The price per mouse will be $23.00 regardless of which machine is...
-
Having ARP table entries time out after 1015 minutes is an attempt at a reasonable compromise. Describe the problems that can occur if the timeout value is too small or too large.
-
Consider a router that is managing three flows, on which packets of constant size arrive at the following wall clock times: All three flows share the same outbound link, on which the router can...
-
Consider the virtual circuit switches in Figure 3.45. Table 3.17 lists, for each switch, what port, {VCI} (or {VCI, interface}) pairs are connected to what other. Connections are bidirectional. List...
-
Prepare a report or exhibit showing how statistics are used in educational testing.
-
XDR is used to encode/decode the header for the SunRPC protocol illustrated by Figure 5.18. The XDR version is determined by the RPCVersion field. What potential difficulty does this present? Would...
-
Would Acquisition or Licensing provide the best growth probability for a MNC and why?
-
The Ranch 888 Noodle Company sells two types of dried noodles:ramen, at $6.50 per box, and chow fun, at $7.70 per box. So farthis year, the company has sold a total of 110,096 boxes ofnoodles,...
-
Certina USA is a watch manufacturer that sells its watches through traveling salespeople paid by it. Migerobe, Inc., owns and operates jewelry counters in McRae's department stores, which are located...
-
Joseph Crotty was a vice president of United Artists Communications, Inc. (UA), a corporation with equity securities registered under the Securities Exchange Act of 1934. Crotty was the head film...
-
On October 28, 1983, Steve Gresham, doing business as Midway Cycle Sales, entered into a Wholesale Financing Agreement with ITT Commercial Finance Corporation. The agreement was to finance the...
-
Which of the following is not an important function of heterochromatin formation? a. Gene silencing b. Prevention of viral proliferation c. Splicing of pre-mRNA d. Prevention of movement of...
-
If the VIN3 gene had a loss-of-function mutation, how do you think that would affect the phenotypes of summer-annual and winter-annual Arabidopsis plants? a. Neither type would flower. b. Both types...
-
The effects of paramutation may vary with regard to a. the likelihood that the parmutagenic allele will alter the paramutable allele. b. the stability of the paramutagenic allele over the course of...
Study smarter with the SolutionInn App