Question No. 1

Ms. X, who is 28 and single, has adjusted gross income of $110,000 and itemized deductions of $ 10,000. Insurance $5,000, welfare amount $ 20,000.

Required:

In 2015, Ms. X will have taxable income of

Answer:

Question No. 2

James Charles lives alone. His support comes from the following sources:

Grand Father support	Nil
Grand Mother support	Nil
A-(his son)	$5,200
B-(his brother)	8,400
C-(his daughter)	4,600
D-(a friend)	2,000
Total support	$20,200

Assuming a multiple support declaration exists.

Required:

Which of the individuals may claim James Charles as a dependent? Support your answer with explanation

Answer:

Question No. 3

As per the company rule, discuss the requirements for staff welfare (meals/ food) provided by employers to be excluded from their employees’ income.

Required: How is the rule distinguished from these requirements?

Answer:

Question No. 4

Mohammed is a Saudi national has submitted his zakat return including the following information for 1441H (amounts in SR)

a) Owns a shopping complex building at a book value of 1,200,000 and with market value of 1,800,000, the investment building produced a monthly rental value of 60,000, actual total expenses incurred of getting the income is of 120,000.

b) Invested in a car showroom at a book value of 600,000 and with market value of 900,000, the car showroom produced annual revenues of 600,000, actual total expenses incurred of getting the income is of 90,000.

Required: Calculate the receptacle of the zakat for each kind of zakat 1441 H.

Answer:

Question No. 5

In your words, discuss why some fixed assets require alms to be paid while others do not.

Give suitable example to support your answer