Microeconomies
Autor: ZhiEn Wong • February 22, 2017 • Coursework • 1,136 Words (5 Pages) • 475 Views
Question 1
Ahmad was a businessman carrying on a cement business. He passed away suddenly in 2009, leaving behind his wife and four children. Before his death, he had prepared a will in which his wife was named as the trustee and their four children as the beneficiaries.
He willed one half of the trust income to the first child at the discretion of the trustee. The balance will be distributed equally between the second and third child. A sum of RM 10,000 is to be accumulated each year for the fourth child, now aged five years until the child reaches the age of 18 years.
Under the terms of the will, the widow is entitled to an annuity of RM 60,000 per year.
Ahmad had investments from which are derived interest, dividend and rent. The details of the business and the investment income for the year ended 31 Mar 2016 are as follows:
Business : 1 April 2015 - 31 Mar 2016 | RM | |||||
Gross income |
|
|
| 800,000 | ||
Allowable expenses |
|
|
| 620,000 | ||
Capital allowances due |
|
| 60,000 | |||
Balancing charges |
|
|
| 3,000 | ||
Balancing allowances |
|
|
| 26,000 | ||
|
|
|
|
| ||
Other income |
|
|
| |||
Rental |
|
|
|
| 15,000 | |
Dividends (Malaysia) | Note (i) | 10,000 | ||||
Bank interest | Note (ii) | 5,000 | ||||
Dividends (China)(remitted) |
|
| 8,000 |
Notes:
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