QUESTION 1: Azman and his wife, Anis, are residents of Malaysia for the year 2023 year of basis. He is a managing director of a multinational company. Anis (a disabled person) works in the same company as her husband, a human resource manager. They have two children, Dian and Daim, below 18 years old. Previously, Azman married Tina and had three children together. i.e. Aimee, Alya and Ajena. The following information was provided for the preparation of the tax filing for the year of assessment 2023: a. b. C. d. Azman and Anis earned a monthly gross salary of RM8,000 and RM5,200 respectively. Azman also received RM700 a month for entertainment allowance and he claimed that all entertainment allowances received from the company were fully spent for entertaining the company's clients. Due to a court order, Azman made an annual alimony payment of RM2,500 to Tina since their separation in 2013. Children: i. ii. 111. iv. V. Aimee, 21 years old, is pursuing an engineering degree at Monash University on a government scholarship worth RM18,000 a year. Azman is given full custody by the court for Aimee. Azman incurred RM5,000 on Aimee's expenses for the year 2023. Alya, 19 years old, is pursuing an accounting degree at Universiti Utara Malaysia. Tina is given full custody by the court for Alya. Azman and Tina incurred RM5,000 and RM8,000, respectively, on Alya's expenses. Ajena, 17 years old, is pursuing a diploma in accounting at UITM. Tina obtained full custody of Ajena. Azman and Tina incurred RM6,000 and RM10,000 respectively on Ajena's expenses. Dian, 23 years old is pursuing a diploma in culinary arts at the Korean Culinary Institute in Soul, Korea. Azman incurred RM10,000 on her maintenance. Dian got married on 31 December 2023 in Korea. Daim, 12 years old, is a disabled child and is schooling at a special private school. In 2023, Azman spent RM10,000 for his special private school, RM8,000 for medical expenses and RM4,000 for the wheelchair. Anis elected to claim child relief on Dian and Daim. Azman and Anis incurred RM2,700 and RM2,300 medical expenses respectively for Anis's mother. Azman spent RM6500 for his mother's care expenses. Azman also paid for complete medical check- up expenses of RM500 each for himself, Anis and Dian. e. f. g. h. i. Insurance premium and contribution to the EPF: ii. iii. iv. Azman paid a premium of RM550 a month on a life insurance policy for the joint life of himself and Anis. Anis paid a premium of RM300 a month on a life insurance policy for the joint life of herself, Azman and Daim. Anis also made a contribution to EPF amounting to RM2,000 in 2020. Azman incurred a premium of RM4,500 on education insurance for his three children, Aimee, Alya and Aiena, Anis incurred a premium of RM2,500 on medical insurance of her two children, Dian and Daim. i. j. k. 1. m. n. Azman and Anis incurred RM1,200 and RM800, respectively, to purchase books and journals. Azman is currently pursuing his doctoral degree in Management and incurred RM6,000 of the course fees. Anis also incurred RM1,600 for her culinary course. Azman contributed a cash donation of RM7,000 to an approved institution and a brand-new wheelchair worth RM3,000 to a healthcare centre (approved institution) where Daim undergoes his Physiotherapy treatment. Anis also contributed books worth RM1,000 to a public library. Azman purchased a touchscreen laptop in May 2023 worth RM2,800 as a wedding anniversary gift to Anis. In return, Anis bought a tablet worth RM2,200 as a birthday gift to Azman in December 2023. Azman deposited RM3,500 and RM3,200 for Alya and Dian, respectively in the SSPN. Later in the year, he withdrew RM700 and RM500, respectively from their accounts. Azman and Anis paid zakah on their incomes amounting to RM1,200 and RM800, respectively for the year. The monthly deductions for Azman and Anis were RM250 and RM120 respectively. Required: Compute the income tax payable by Azman and Anis for the year of assessment 2023 under a separate and joint assessment. (a) (b) Advise Anis if she should elect joint assessment.

QUESTION 1: Azman and his wife, Anis, are residents of Malaysia for the year 2023 year of basis. He is a managing director of a multinational company. Anis (a disabled person) works in the same company as her husband, a human resource manager. They have two children, Dian and Daim, below 18 years old. Previously, Azman married Tina and had three children together. i.e. Aimee, Alya and Ajena. The following information was provided for the preparation of the tax filing for the year of assessment 2023: a. b. C. d. Azman and Anis earned a monthly gross salary of RM8,000 and RM5,200 respectively. Azman also received RM700 a month for entertainment allowance and he claimed that all entertainment allowances received from the company were fully spent for entertaining the company's clients. Due to a court order, Azman made an annual alimony payment of RM2,500 to Tina since their separation in 2013. Children: i. ii. 111. iv. V. Aimee, 21 years old, is pursuing an engineering degree at Monash University on a government scholarship worth RM18,000 a year. Azman is given full custody by the court for Aimee. Azman incurred RM5,000 on Aimee's expenses for the year 2023. Alya, 19 years old, is pursuing an accounting degree at Universiti Utara Malaysia. Tina is given full custody by the court for Alya. Azman and Tina incurred RM5,000 and RM8,000, respectively, on Alya's expenses. Ajena, 17 years old, is pursuing a diploma in accounting at UITM. Tina obtained full custody of Ajena. Azman and Tina incurred RM6,000 and RM10,000 respectively on Ajena's expenses. Dian, 23 years old is pursuing a diploma in culinary arts at the Korean Culinary Institute in Soul, Korea. Azman incurred RM10,000 on her maintenance. Dian got married on 31 December 2023 in Korea. Daim, 12 years old, is a disabled child and is schooling at a special private school. In 2023, Azman spent RM10,000 for his special private school, RM8,000 for medical expenses and RM4,000 for the wheelchair. Anis elected to claim child relief on Dian and Daim. Azman and Anis incurred RM2,700 and RM2,300 medical expenses respectively for Anis's mother. Azman spent RM6500 for his mother's care expenses. Azman also paid for complete medical check- up expenses of RM500 each for himself, Anis and Dian. e. f. g. h. i. Insurance premium and contribution to the EPF: ii. iii. iv. Azman paid a premium of RM550 a month on a life insurance policy for the joint life of himself and Anis. Anis paid a premium of RM300 a month on a life insurance policy for the joint life of herself, Azman and Daim. Anis also made a contribution to EPF amounting to RM2,000 in 2020. Azman incurred a premium of RM4,500 on education insurance for his three children, Aimee, Alya and Aiena, Anis incurred a premium of RM2,500 on medical insurance of her two children, Dian and Daim. i. j. k. 1. m. n. Azman and Anis incurred RM1,200 and RM800, respectively, to purchase books and journals. Azman is currently pursuing his doctoral degree in Management and incurred RM6,000 of the course fees. Anis also incurred RM1,600 for her culinary course. Azman contributed a cash donation of RM7,000 to an approved institution and a brand-new wheelchair worth RM3,000 to a healthcare centre (approved institution) where Daim undergoes his Physiotherapy treatment. Anis also contributed books worth RM1,000 to a public library. Azman purchased a touchscreen laptop in May 2023 worth RM2,800 as a wedding anniversary gift to Anis. In return, Anis bought a tablet worth RM2,200 as a birthday gift to Azman in December 2023. Azman deposited RM3,500 and RM3,200 for Alya and Dian, respectively in the SSPN. Later in the year, he withdrew RM700 and RM500, respectively from their accounts. Azman and Anis paid zakah on their incomes amounting to RM1,200 and RM800, respectively for the year. The monthly deductions for Azman and Anis were RM250 and RM120 respectively. Required: Compute the income tax payable by Azman and Anis for the year of assessment 2023 under a separate and joint assessment. (a) (b) Advise Anis if she should elect joint assessment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Transcribed Image Text:QUESTION 1: Azman and his wife, Anis, are residents of Malaysia for the year 2023 year of basis. He is a managing director of a multinational company. Anis (a disabled person) works in the same company as her husband, a human resource manager. They have two children, Dian and Daim, below 18 years old. Previously, Azman married Tina and had three children together. i.e. Aimee, Alya and Ajena. The following information was provided for the preparation of the tax filing for the year of assessment 2023: a. b. C. d. Azman and Anis earned a monthly gross salary of RM8,000 and RM5,200 respectively. Azman also received RM700 a month for entertainment allowance and he claimed that all entertainment allowances received from the company were fully spent for entertaining the company's clients. Due to a court order, Azman made an annual alimony payment of RM2,500 to Tina since their separation in 2013. Children: i. ii. 111. iv. V. Aimee, 21 years old, is pursuing an engineering degree at Monash University on a government scholarship worth RM18,000 a year. Azman is given full custody by the court for Aimee. Azman incurred RM5,000 on Aimee's expenses for the year 2023. Alya, 19 years old, is pursuing an accounting degree at Universiti Utara Malaysia. Tina is given full custody by the court for Alya. Azman and Tina incurred RM5,000 and RM8,000, respectively, on Alya's expenses. Ajena, 17 years old, is pursuing a diploma in accounting at UITM. Tina obtained full custody of Ajena. Azman and Tina incurred RM6,000 and RM10,000 respectively on Ajena's expenses. Dian, 23 years old is pursuing a diploma in culinary arts at the Korean Culinary Institute in Soul, Korea. Azman incurred RM10,000 on her maintenance. Dian got married on 31 December 2023 in Korea. Daim, 12 years old, is a disabled child and is schooling at a special private school. In 2023, Azman spent RM10,000 for his special private school, RM8,000 for medical expenses and RM4,000 for the wheelchair. Anis elected to claim child relief on Dian and Daim. Azman and Anis incurred RM2,700 and RM2,300 medical expenses respectively for Anis's mother. Azman spent RM6500 for his mother's care expenses. Azman also paid for complete medical check- up expenses of RM500 each for himself, Anis and Dian. e. f. g. h. i. Insurance premium and contribution to the EPF: ii. iii. iv. Azman paid a premium of RM550 a month on a life insurance policy for the joint life of himself and Anis. Anis paid a premium of RM300 a month on a life insurance policy for the joint life of herself, Azman and Daim. Anis also made a contribution to EPF amounting to RM2,000 in 2020. Azman incurred a premium of RM4,500 on education insurance for his three children, Aimee, Alya and Aiena, Anis incurred a premium of RM2,500 on medical insurance of her two children, Dian and Daim. i. j. k. 1. m. n. Azman and Anis incurred RM1,200 and RM800, respectively, to purchase books and journals. Azman is currently pursuing his doctoral degree in Management and incurred RM6,000 of the course fees. Anis also incurred RM1,600 for her culinary course. Azman contributed a cash donation of RM7,000 to an approved institution and a brand-new wheelchair worth RM3,000 to a healthcare centre (approved institution) where Daim undergoes his Physiotherapy treatment. Anis also contributed books worth RM1,000 to a public library. Azman purchased a touchscreen laptop in May 2023 worth RM2,800 as a wedding anniversary gift to Anis. In return, Anis bought a tablet worth RM2,200 as a birthday gift to Azman in December 2023. Azman deposited RM3,500 and RM3,200 for Alya and Dian, respectively in the SSPN. Later in the year, he withdrew RM700 and RM500, respectively from their accounts. Azman and Anis paid zakah on their incomes amounting to RM1,200 and RM800, respectively for the year. The monthly deductions for Azman and Anis were RM250 and RM120 respectively. Required: Compute the income tax payable by Azman and Anis for the year of assessment 2023 under a separate and joint assessment. (a) (b) Advise Anis if she should elect joint assessment.

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