LUMS

ACCOUNTING & FINANCE (ACCT 370)

CLASS WORK 7

From Mr. Dee’s following income statement for tax year 2023 compute taxable income
and tax

BS 4,000,000
HRA 1,000,000
CA 500,000
Fixed med. 400,000

Rent from a house let out on 1st July ‘22 1,000,000

Non-adjustable amount for house 10m
Paid property tax 20,000
Insurance premium 50,000
Repair of the roof 30,000

Rent from a vacant plot let out for parking 3,000,000

Profit on bank savings account 500,000

Dividend on shares of a public company 200,000