Exercise Unearned Income

1. Dividend
Tunas Cekal Bhd (net-imputation system)

7,500

Garuda Bhd (net-single tier system)

8,000

Satu Malaysia Trust (pending approval)

2,500

Pasti Unit Trust (unapproved)

3,200

Solution:
Dividend
Tunas Cekal Bhd (7,500/.75))

10,000

Garuda Bhd (single tier system)

Exempted

Satu Malaysia Trust (pending approval)

2,500

Pasti Unit Trust (unapproved)

3,200

2.Royalty
Income:
Book publication

35,000

Translation fee (from agent of the Ministry of Higher

Education)

22,000
57,000

Expenditures:
Cost of computer

5,000

Cost of printer

2,000

Editing and typing

3,000

(10,000)

Solution
Income from book publication

35,000

Less: Exemption Para 32B

(20,000)

Income from translation fee

15,000

22,000

Less: Exemption Para 32A

(12,000)

10,000
25,000

Less: Revenue expenses

Cost of computer

Not deductable

Cost of printer

Not deductable

Editing and typing

(3,000)

1. Rental
RM

RM

Income
Rental income (1 August 2012 31 December 2012)

12,500

Rental deposit (2 months rental, refundable)

5,000

Deposits for water and electricity

900
18,400

Less expenditure:
Quit rent & assessment (1 March 2012 31 December 2012)
Extension of the kitchen and installation of air-conditioners
Real estate agents fee for introducing the tenant

1,800
20,000
500

Advertisement

300

Interest on loan (1 March 2012 31 December 2012)

4,500
27,100

Rental loss

(8,700)

Note 1 Rental Income

Income
Rental income (1 August 2012 31 December 2012)
Rental deposit (2 months rental, refundable)
Deposits for water and electricity
Less expenditure:
Quit rent & assessment (1,800 x 5/10)
Extension of the kitchen and installation of air-conditioners
Advertisement (first tenant)
Real estate agents fee for introducing the tenant
Interest on loan (4,500 x 5/10)

12,500
12,500
900
500
2,250
3,650
(8,850)

Rental income