Use the Motor Vehicle Taxable Benefit table below to answer questions 1 and 2. Motor Vehicles: Annual Taxable Benefit Original cost of motor vehicle Age of MV – up to 5 years old Age of MV – Over 5 years old (up to 50% private use) (over 50% private use) (up to 50% private use) (over 50% private use) Up to $300,000 $40,000 $48,000 $30,000 $36,000 Up to $700,000 $50,000 $60,000 $40,000 $48,000 Up to $1,000,000 $75,000 $80,000 $60,000 $65,000 Up to $1,500,000 $90,000 $100,000 $72,000 $80,000 Over $1,500,000 $120,000 $140,000 $98,000 $100,00 1. Melissa Hines earned an annual salary of $1,050,000 and her employer paid $50,000 per month to an independent landlord for rental of her apartment. She was given a company vehicle that was bought 8 years earlier for $1,100,000. It is estimated that Ms. Hines private usage of the vehicle is 40%. What would be her total emoluments for the year? A.$1,722,000 B.$1,715,000 C.$1,730,000 D.$1,740,000 2. Jeffery Thomas works at Wingman Ltd. He is provided with a motor vehicle that was bought for $1,850,000 and is less than 3 years old. It is estimated that Jeffery uses the vehicle for 70% private use. He receives a salary for the month of September of $80,000 and earned $35,000 as commission. Calculate his gross income for the month of September. A.$115,000 B.$123,333 C.$126,667 D.$125,000 3. The Canon of _____________ means that as the income of an individual increases then more tax revenue would automatically be fetched. The argument behind this is that taxation should have built-in flexibility. A.Canon of Flexibility B.Canon of Productivity C.Canon of Convenience D.Canon of Elasticity 4. In 2012, the employees of Radcliff Ltd. agreed to purchase 5% of the share capital of 10 million shares of $2 each. There are 20 employees in the plan and each purchased an equal number of shares. Johnson works at Radcliff Ltd. What would be his ESOP share deduction? A.$50,000 B.$75,000 C.$45,000 D.$25,000 5. A gratuity is taxable in all of the following situations except when: A.The gratuity is paid at the end of the contract period, but there is no termination of employment. B.Payment is made through the annual budget of certain government entities or statutory bodies. C.The amount paid is considered by the contractor General to be a periodic payment D.The payment is made in lieu of a pension and it is in the form of a lump sum paid out of the consolidated fund.
Use the Motor Vehicle Taxable Benefit table below to answer questions 1 and 2.
|
Motor Vehicles: Annual Taxable Benefit |
||||
|
Original cost of motor vehicle |
Age of MV – up to 5 years old |
Age of MV – Over 5 years old |
||
|
|
(up to 50% private use) |
(over 50% private use) |
(up to 50% private use) |
(over 50% private use) |
|
Up to $300,000 |
$40,000 |
$48,000 |
$30,000 |
$36,000 |
|
Up to $700,000 |
$50,000 |
$60,000 |
$40,000 |
$48,000 |
|
Up to $1,000,000 |
$75,000 |
$80,000 |
$60,000 |
$65,000 |
|
Up to $1,500,000 |
$90,000 |
$100,000 |
$72,000 |
$80,000 |
|
Over $1,500,000 |
$120,000 |
$140,000 |
$98,000 |
$100,00 |
1. Melissa Hines earned an annual salary of $1,050,000 and her employer paid $50,000 per month to an independent landlord for rental of her apartment. She was given a company vehicle that was bought 8 years earlier for $1,100,000. It is estimated that Ms. Hines private usage of the vehicle is 40%. What would be her total emoluments for the year?
A.$1,722,000
B.$1,715,000
C.$1,730,000
D.$1,740,000
2. Jeffery Thomas works at Wingman Ltd. He is provided with a motor vehicle that was bought for $1,850,000 and is less than 3 years old. It is estimated that Jeffery uses the vehicle for 70% private use. He receives a salary for the month of September of $80,000 and earned $35,000 as commission. Calculate his gross income for the month of September.
A.$115,000
B.$123,333
C.$126,667
D.$125,000
3. The Canon of _____________ means that as the income of an individual increases then more tax revenue would automatically be fetched. The argument behind this is that
A.Canon of Flexibility
B.Canon of Productivity
C.Canon of Convenience
D.Canon of Elasticity
4. In 2012, the employees of Radcliff Ltd. agreed to purchase 5% of the share capital of 10 million shares of $2 each. There are 20 employees in the plan and each purchased an equal number of shares. Johnson works at Radcliff Ltd. What would be his ESOP share deduction?
A.$50,000
B.$75,000
C.$45,000
D.$25,000
5. A gratuity is taxable in all of the following situations except when:
A.The gratuity is paid at the end of the contract period, but there is no termination of employment.
B.Payment is made through the annual budget of certain government entities or statutory bodies.
C.The amount paid is considered by the contractor General to be a periodic payment
D.The payment is made in lieu of a pension and it is in the form of a lump sum paid out of the consolidated fund.
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