Lee was a businessman in Suva. He has some commercial properties in the heart of Suva which have a total worth of $6,000,000. He was survived by one son and one daughter. As per his last will, upon his death, all the property will be under a trust named Lee &Family Trust, managed by his son Lin. He will have a share of 30% in while other daughter, Lina will be having remaining shares. During the year 2019, the following are the financial transactions: • Commercial properties are rented out which generated $150,000 rent during the year • Form the business they earned $130,000 • They have investment in Pacific Company worth $145,000 and return is 3.5% per annum • For the rented property, costs incurred were: • Insurance $4,500 • Depreciation $13,000 • Local Council rate $3,000 • Security of the premises $6,000 Required: 1. Calculate Income Tax of beneficiary Lin and Lina for the financial year ended on 31st December 2020.
Lee was a businessman in Suva. He has some commercial properties in the heart of Suva which have a total worth of $6,000,000. He was survived by one son and one daughter. As per his last will, upon his death, all the property will be under a trust named Lee &Family Trust, managed by his son Lin. He will have a share of 30% in while other daughter, Lina will be having remaining shares. During the year 2019, the following are the financial transactions: • Commercial properties are rented out which generated $150,000 rent during the year • Form the business they earned $130,000 • They have investment in Pacific Company worth $145,000 and return is 3.5% per annum • For the rented property, costs incurred were: • Insurance $4,500 • Depreciation $13,000 • Local Council rate $3,000 • Security of the premises $6,000 Required: 1. Calculate Income Tax of beneficiary Lin and Lina for the financial year ended on 31st December 2020.
Chapter8: Trusts
Section: Chapter Questions
Problem 2CTD
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![Lee was a businessman in Suva. He has some commercial properties in the heart of Suva which have a
total worth of $6,000,000. He was survived by one son and one daughter. As per his last will, upon his
death, all the property will be under a trust named Lee &Family Trust, managed by his son Lin. He will
have a share of 30% in while other daughter, Lina will be having remaining shares. During the year 2019,
the following are the financial transactions:
• Commercial properties are rented out which generated $150,000 rent during the year
• Form the business they earned $130,000
• They have investment in Pacific Company worth $145,000 and return is 3.5% per annum
• For the rented property, costs incurred were:
• Insurance $4,500
• Depreciation $13,000
• Local Council rate $3,000
• Security of the premises $6,000
Required:
1. Calculate Income Tax of beneficiary Lin and Lina for the financial year ended on 31t December
2020.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbf6edaf6-a6f4-42c4-94de-06ba3f80326a%2F8ad9e6f2-d30b-4967-be5e-ac8a91167ff4%2Ffjhdgif_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Lee was a businessman in Suva. He has some commercial properties in the heart of Suva which have a
total worth of $6,000,000. He was survived by one son and one daughter. As per his last will, upon his
death, all the property will be under a trust named Lee &Family Trust, managed by his son Lin. He will
have a share of 30% in while other daughter, Lina will be having remaining shares. During the year 2019,
the following are the financial transactions:
• Commercial properties are rented out which generated $150,000 rent during the year
• Form the business they earned $130,000
• They have investment in Pacific Company worth $145,000 and return is 3.5% per annum
• For the rented property, costs incurred were:
• Insurance $4,500
• Depreciation $13,000
• Local Council rate $3,000
• Security of the premises $6,000
Required:
1. Calculate Income Tax of beneficiary Lin and Lina for the financial year ended on 31t December
2020.
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