1. Yellow Ltd’s accounting profit for the year of assessment 2019/20is $1,900,000, after charging the following item:Payment for early termination of lease of office, with 5 more years to run to termination: $1,000,000. The termination was driven by the decision to move to a bigger office.In addition, the company also made a payment of $100,000 for purchase of computer hardware and software during the year.Yellow Ltd’s assessable profit for the year:Select one:a.$2.8 million.b.$3 million.c.None of the above.d.$1.9 million.2. Which of the following items is normally deductible from the assessable income under salaries tax?Select one:a.Tuition fee paid to a local university for an accounting programme by a sales executive, with a view of changing his career to the accounting field.b.Legal expense incurred by an employee to recover unpaid salary from a former employer.c.Subscription fee paid to a social club by a merchandiser for the purpose of entertaining customers.d.Subscription to journals paid by a university lecturer for carrying out research related to his job.3. Which of the following are exempt from stamp duty?I. A Ltd owns 90% of the share capital of B Ltd and transfers a property located in Hong Kong to B.II. A Ltd owns 80% share capital of B Ltd and owns 50% share capital of C Ltd, which owns 20% share capital of B Ltd; A Ltd transfers a property located in Hong Kong to B Ltd.III. Mr A owns 100% share capital of B Ltd and leases a property located in Hong Kong to B Ltd.Select one:a.All of the above.b.II and III only.c.I and II only.d.II only.LawSocial ScienceTax law ACY 4003
