IMG_0474

PNG

School

City University of Hong Kong *

*We aren’t endorsed by this school

Course

4251

Subject

Accounting

Date

Nov 24, 2024

Type

PNG

Pages

1

Uploaded by BrigadierJellyfishMaster2135

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17:04 Sun1 Oct = 39% J (v Dashboard Q3 Mr. Lam is the chief accountant of a Hong Kong company, and he received an annual remuneration of $1,500,000 and a refund of rent of $30,000 each month from employer. Each month, he paid rent of $36,000 and building management fee of $4,000. Each quarter, he pays rates of $6,000. Compute Mr. Lam’s assessable income for the year. Salaries $1,500,000 Rental Value (10% x $1,500,000) $150,000 Less: Rent paid by employee 504,000 * Less: Rent refunded ($30,000 x 12) 360,000 144,000 __6,000 ————— Assessable income $1,506,000 *$(36,000 + 4,000 + ) x 12 = $504,000 Q4 Mr. Pak is the regional sales manager of an American company. His employment is sourced outside Hong Kong. He received an annual remuneration of $2,000,000 and a monthly refund of rent of $50,000 from his employer. Each month, he paid rent of $60,000. During the year of assessment, he stayed in Hong Kong for 292 days. Compute Mr. Pak’s assessable income for the year. Salaries($2,000,000 x ) $1,600,000 Rental value ($1,600,000 x 10%) $160,000 Less: Rent paid by employee 720,000 Less: Rent refunded 600,000 120,000 _40,000 ($50,000 x 12) Assessable income $1,640,000 Note: Although the rental value is calculated on the 10% of the reduced time- apportioned income, the rent suffered for the whole year is deductible from the A2 Calendar E To Do @ Notifications @ Inbox
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