Nielson is a contract-based employee working in one of the government departments. The contract period started...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Nielson is a contract-based employee working in one of the government departments. The contract period started from June 1st, 2018 to May 31st, 2020. During the year ended March 31st, 2020, he received the following from his employer (the government): I. Annual Salary (from June 1st, 2018 to May 31st, 2020): $480,000 m. Contract gratuity: 15% of his total contract salary upon completion of the 2-year employment contract n. The employer deducted 5% of Nielson's monthly salary as his contribution to the MPF retirement scheme Other information: 1. Nielson's income from the part-time job, from April 1st, 2018 to May 31st, 2018, was $32,000 in total. m. Nielson paid the following i. Cash donations to approved charitable organizations ii. Self-education expenses n. Nielson and his wife have a 2-year old son.2 o. Nielson's wife is a full-time housewife. $5,000 $2,000 p. Nielson's mother-in-law aged 57 is living with him. q. Nielson bought an apartment under a mortgage loan from bank. The annual interest payment for the mortgage is $45,000. r. Nielson purchased a health insurance package which is a certified plan of Voluntary Health Insurance Scheme at a premium of $4,000 per year which covers the period from April 1st 2019 to March 31st, 2020. s. Nielson select to have the contract gratuity related back Question a. Compute the amount of contract gratuity to be assessed in each of the years of assessment concerned. (10 marks) b. Compute Nielson's net assessable income and the salaries tax payable for the year of assessment 2019/20. Which tax rate, standard or progressive, will he choose to pay the tax? (25 marks) Nielson is a contract-based employee working in one of the government departments. The contract period started from June 1st, 2018 to May 31st, 2020. During the year ended March 31st, 2020, he received the following from his employer (the government): I. Annual Salary (from June 1st, 2018 to May 31st, 2020): $480,000 m. Contract gratuity: 15% of his total contract salary upon completion of the 2-year employment contract n. The employer deducted 5% of Nielson's monthly salary as his contribution to the MPF retirement scheme Other information: 1. Nielson's income from the part-time job, from April 1st, 2018 to May 31st, 2018, was $32,000 in total. m. Nielson paid the following i. Cash donations to approved charitable organizations ii. Self-education expenses n. Nielson and his wife have a 2-year old son.2 o. Nielson's wife is a full-time housewife. $5,000 $2,000 p. Nielson's mother-in-law aged 57 is living with him. q. Nielson bought an apartment under a mortgage loan from bank. The annual interest payment for the mortgage is $45,000. r. Nielson purchased a health insurance package which is a certified plan of Voluntary Health Insurance Scheme at a premium of $4,000 per year which covers the period from April 1st 2019 to March 31st, 2020. s. Nielson select to have the contract gratuity related back Question a. Compute the amount of contract gratuity to be assessed in each of the years of assessment concerned. (10 marks) b. Compute Nielson's net assessable income and the salaries tax payable for the year of assessment 2019/20. Which tax rate, standard or progressive, will he choose to pay the tax? (25 marks)
Expert Answer:
Answer rating: 100% (QA)
a The amount of contract gratuity to be assessed in each of the years of assessment concerned is as ... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood
Posted Date:
Students also viewed these accounting questions
-
During the year ended March 29, 2014, Indigo Books & Music Inc. (Indigo) recorded numerous accruals and deferrals. As a long-term employee of Indigo's accounting and finance staff, it is your job to...
-
An experiment results in one of the following sample points: E1, E2, E3, E4, or E5. a. Find P(E3) if P(E1) = .1, P(E2) = .2, P(E4) = .1, and P(E5) = .1. b. Find P(E3) if P(E1) = P(E3), P(E2) = .1,...
-
In one of the early experiments designed to elucidate the genetic code, Marshall Nirenberg of the U.S. National Institutes of Health (Nobel Prize in physiology or medicine, 1968) prepared a synthetic...
-
Capulet Company establishes a stock-appreciation rights program that entitles its new president Ben Davis to receive cash for the difference between the market price of the stock and a...
-
Use Algorithm 5.4 to approximate the solutions to the initial-value problems in Exercise 3. In Exercise 3 a. y' = y/t (y/t)2, 1 t 2, y(1) = 1, with h = 0.1; actual solution y(t) = t/(1 + ln t). b....
-
Look at the ASCII chart in Appendix C and determine the code of the first printable character (a space), the A character, and the a character. Code Character Code Character Code Character Code...
-
A person at age 30 is planning for retirement at age 60. He projects that he will need \($100,000\) a year until age 80. Determine the uniform annual contribution (by him and his company) needed to...
-
Jill Kramer borrowed $25,000 to pay for a startup business. Jill must repay the loan at the end of five months in one payment with a 6 percent simple interest rate. a. What is the total amount that...
-
What are some of the challenges a small medical office would have to transition from paper to an EHR system?
-
Top Quality Appliance-Long Beach has just purchased a franchise from Top Quality Appliance (TQA). TQA is a manufacturer of kitchen appliances. TQA markets its products via retail stores that are...
-
Using information in the table solve question 6/7/8. deviation, and the deviation squared. Then compute the standard deviation using the procedure given in that section. Experimentally Determined...
-
A car drives at a speed of 59.5 mph. After hitting the breaks, the car comes to a stop after driving 49.0 m. How much time did it take the car to stop, assuming the acceleration during breaking is...
-
what is the shortest maturity bond issued by pfizer that is outstanding?
-
A client walks into your office to prepare a TY 2 0 2 0 return for federal and state. He has some charitable expenses worth $ 1 , 0 0 0 , which is not enough to itemize. So , he wants to take $ 3 0 0...
-
A minor taxpayer who is being claimed on his parents' return is filing with the State to get back their withholding. What is the minimum amount of their standard deduction and A minor taxpayer who is...
-
Assume that part of accounts and other receivables on Thompson Toys' February 2 , 2 0 1 0 , balance sheet is comprised of $ 4 3 , 2 2 5 , 0 0 0 of notes receivable. Two notes make up the amount. The...
-
Construct solid-liquid and solid-vapour phase boundaries for carbon tetrachloride CCl 2 given the following: Density of solid CCl2 = 1.809 g/cm Density of liquid CCl2 = 1.59 g/cm Enthalpy of fusion =...
-
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment...
-
Refer to Problems 6-2B and 6-3B to prepare a table comparing ending inventory , cost of goods sold, and gross margin under both the FIFO and the moving-weighted-average-cost methods. You will need to...
-
Prepare the journal entries for Passport Merchandising, assuming that Passport Merchandising uses a perpetual inventory system. Passport Merchandising charges GST on all its sales at the rate of 5...
-
1. A business that sells on account must have good accounts receivable records to ensure collection from customers. What is the name of the detailed record of amounts collectible from individual...
-
What is the difference between real objects and virtual objects? Give an example for each.
-
Give a superclass for the following three classes: car, airplane, tank.
-
How do business classes differ from utility classes? Provide one example for each.
Study smarter with the SolutionInn App