Section A [30% of 100 marks] [Section A: Answer all questions in this Section) Question 1 [30 marks] Alexandre, aged 43, is running a supermarket as a sole trading business since 2010. The following were the financial accounts drawn up to 30 November 2019. The details were as follows: Gross profit Dividends - Singapore Loss - Disposal of business van $130,000 2,100 (1,200) 1 2 130,900 3 4 Expenses: Repairs Donations Entertainment Utilities Rent Salaries and wages Depreciation General provision for bad debts Miscellaneous expenses 11,028 1,340 16.700 8,900 12,100 42,600 9.330 1,890 17,200 5 6 Net operating profit 9,812 OSBE Additional information: 1. The dividends were from Petri Limited received on 14 October 2019 which was one tier Singapore dividend. 2. The business van was purchased on 12 December 2017 for S$43,000 and was depreciated using S19A of 3 year allowances. The asset was sold for S$5,600 cash on the last day of financial year. 3. The repairs analysis were as follows: Installation of CCTV camera S$800 Improvement to computer equipment S$2,000 Repainting of store room S$5,100 General maintenance of store S$3,128 4. Donations - S$1.340 Blankets and bed sheets for Jamiyah Children Home S$990 Cash donations to National Heart Foundation - SS210; Gifts and hampers for Visually Handicapped Home - S$140 5. Salaries and wages - S$42,600 Staff salaries Part time wages for son Alexandre Salary Drawings by Alexandre Part time staff wages S$20,400 S$1,200 (at market rate) S$11,500 S$3,670 S$5,830 6. Miscellaneous expenses - S$17.200 Included in the above were the following: Fines and penalties to Traffic Police Private car expenses Transport reimbursements to staff for business S$4,110 S$3,330 S$9,760 The Comptroller of Income Tax has agreed that the capital allowances for current year is S$2100. Other information: Alexandre is married and has 2 children aged 13 and 11 respectively. The spouse has an income of $3,200 for the year working as a nurse assistant in a private clinic. He has also made donations on his personal account to Sisters of the Poor, cash of $900 made on 9/7/19. He has completed National Service and was not active NS men in the current year. Alexandre's father aged 80 and mother in law aged 53 are staying in the same household as him. The family has an Indonesian maid for whom he pays a levy of $265 per month Required: (a) Compute the adjusted profit for his sole trading business (11 marks] (b) Determine the chargeable income of Alexandre for the year of assessment 2020 [17 marks) (c) The tax payable for Alexandre for the year of assessment 2020. [2 marks) [Total: 30 marks]