Muhammad Haikal is a successful entrepreneur who owned 10 pieces of land located in Peninsular Malaysia....

  

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Muhammad Haikal is a successful entrepreneur who owned 10 pieces of land located in Peninsular Malaysia. The 8 pieces of the land was utilized for paddy cultivation, 1 piece of the land was leased out to Fuslift Bhd at an annual lease payment of RM2,000 and the remaining piece of the land was used for storage facilities. The storage facilities were built to facilitate Muhammad Haikal to spread the sale over a period after harvesting. The construction of the storage facilities is expected to complete on 31 December 2017 at an initial cost of RM230,000. The following information is related to the paddy production in the year of 2017: - The land was irrigated using both natural as well as artificial irrigation method. There were two harvest periods a year with a total of 4000kg paddy produced and sold. Pesticide, seeds costs and fertilizer costs were RM43, RM56 and RM97 per piece of land. Annual quit rent of RM50 per piece of land payable by Haikal, the owner of the land. Total utilities paid amounted to RM250 per month. Total wages paid for ploughing activities amounted to RM3,500. Haikal received government subsidy amounted to RM5,000. Current market price for the quality of paddy produced was RMO.90 per kg. The nisab applicable is 5 awsuq of paddy equivalent to 1,300 kilograms. Muhammad Haikal inherited some gold and silver from her grandmother. The pool includes ten gold coins weighing 25 grams each, five gold necklace weighting average of 10grams each and 600 grams of silver. Muhammad Haikal is a collector of traditional stamps and bank notes. Currently he owned a total of 100 various Malaysian old paper notes (20 of RM1, 20 of RM10 notes, 20 of RM5 notes, 20 of RM100 notes and 20 of RM500 notes). The old notes are currently valued at RM15,000. He also owned a set of Sultan of Kedah stamps issued in the 1940s which is worth RM1,380. These assets have been held for collection for more than a year. The current market value of one gram of gold and one gram of silver is RM150 and RM50. Required: a) Calculate Muhammad Haikal zakat due on his paddy production for the year ended 31 December 2017, using traditional and modern approach. b) Calculate Muhammad Haikal zakat due on his wealth (other than paddy production) for the year ended 31 December 2017. c) Discuss the applicable measurement if the inherited wealth received by Muhammad Haikal were not kept for investment purposes. Muhammad Haikal is a successful entrepreneur who owned 10 pieces of land located in Peninsular Malaysia. The 8 pieces of the land was utilized for paddy cultivation, 1 piece of the land was leased out to Fuslift Bhd at an annual lease payment of RM2,000 and the remaining piece of the land was used for storage facilities. The storage facilities were built to facilitate Muhammad Haikal to spread the sale over a period after harvesting. The construction of the storage facilities is expected to complete on 31 December 2017 at an initial cost of RM230,000. The following information is related to the paddy production in the year of 2017: - The land was irrigated using both natural as well as artificial irrigation method. There were two harvest periods a year with a total of 4000kg paddy produced and sold. Pesticide, seeds costs and fertilizer costs were RM43, RM56 and RM97 per piece of land. Annual quit rent of RM50 per piece of land payable by Haikal, the owner of the land. Total utilities paid amounted to RM250 per month. Total wages paid for ploughing activities amounted to RM3,500. Haikal received government subsidy amounted to RM5,000. Current market price for the quality of paddy produced was RMO.90 per kg. The nisab applicable is 5 awsuq of paddy equivalent to 1,300 kilograms. Muhammad Haikal inherited some gold and silver from her grandmother. The pool includes ten gold coins weighing 25 grams each, five gold necklace weighting average of 10grams each and 600 grams of silver. Muhammad Haikal is a collector of traditional stamps and bank notes. Currently he owned a total of 100 various Malaysian old paper notes (20 of RM1, 20 of RM10 notes, 20 of RM5 notes, 20 of RM100 notes and 20 of RM500 notes). The old notes are currently valued at RM15,000. He also owned a set of Sultan of Kedah stamps issued in the 1940s which is worth RM1,380. These assets have been held for collection for more than a year. The current market value of one gram of gold and one gram of silver is RM150 and RM50. Required: a) Calculate Muhammad Haikal zakat due on his paddy production for the year ended 31 December 2017, using traditional and modern approach. b) Calculate Muhammad Haikal zakat due on his wealth (other than paddy production) for the year ended 31 December 2017. c) Discuss the applicable measurement if the inherited wealth received by Muhammad Haikal were not kept for investment purposes.

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