1. Red Ltd commenced its manufacturing business in Hong Kong in… 1. Red Ltd commenced its manufacturing business in Hong Kong in June 2008 and closed its accounts annually on 31 March. The following assets are purchased and sold during the year of assessment 2019/20:i. Purchased a computer (Annual Allowance: 30%) $40,000ii. Bought office furniture (Annual Allowance: 20%) $50,000iii. Sold old office furniture (original cost $8,000) $10,000iv. Acquired a motor vehicle (Annual Allowance =30%) $180,000The amount of initial allowance which Red Ltd is entitled to claim for the year of assessment 2019/20 is:Select one:a.None of the above.b.$108,000.c.$138,000.d.$30,000.2. Which of the following statements is/are CORRECT:I. Married person’s allowance is only available to husband and wife who have elected to be assessed under joint assessment or personal assessment.II. Married person’s allowance can only be granted on the condition that the claimant has maintained or supported the other spouse.III.Personal allowances are available to non-resident taxpayers proportionally based on number of days present in Hong Kong in the year of assessment concerned.Select one:a.I & III only.b.None of the above.c.II only.d.I & II only.3. Peter is the Chief Executive Officer of Zinc Ltd. He was provided with a flat in Hong Kong by Gold Ltd, a subsidiary of Zinc Ltd. The rateable value of the property assessed by the Rating and Valuation Department was $960,000.In connection with Peter’s employment with ZincLtd, he received salary income totaling $12,000,000 for the year of assessment 2019/20. In addition, he exercised a share option during the year and the taxable gain was $560,000. Deductible expenses agreed with the Inland Revenue Department to be $170,000.What is the taxable benefit from the accommodation provided by Gold Ltd for the year of assessment 2019/20?Select one:a.$1,239,000.b.$960,000.c.$1,183,000.d.None of the above.LawSocial ScienceTax law ACY 4003
