Part C

$10$ Marks

A Lease contract was signed on $1$ January $2016$ for the lease of business premises. The contract is for a period of $20$ years. The lessee must pay a premium of $N$$$200000$ as well as annual rent of $N$$$72000$ payable per month to the lessor.

Required:

How much is the lease premium allowance deduction from $1$ January $2016$ up to $28$ February $282035?(4$ Marks$)$

How much is the lease premium and rent deduction for the year ended $28$ February $2036?(2$ Marks$)$

How much is the lease premium and rent which are included in the gross income of the lessor on $28$ February $2016?(2$ Marks$)$

What are the requirements for lease premiums to be deductible: $(2$ Marks$)$