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Diploma in Accounting
Continuous Assessment 1 (Individual Assignment: 100 marks)
30% of Final Grade
INSTRUCTIONS TO STUDENTS:
This assignment consists of ONE (1) question with three (3) parts. You are required to provide ALL workings clearly.
Type your answers in a Word document using Times New Roman, font size 12 and submit via CANVAS. Assignments submitted through other ways (e.g. through email or hardcopy to the lecturer) will not be accepted.
Open your document in CANVAS after upload to ensure that the document submitted is complete and in order.
You should receive a confirmation email from CANVAS after submission.
Your submission should include a cover page that follows the following format:
Module Code & Module Name
Diploma Name
CA 1 (Individual Assignment)
Name
SIM Student Number
Do not type the questions into your submission.
Deadline: 24 July 2024 (Wednesday)
Late submission is subject to a 20%-mark deduction. Submissions that are late by more than one day will NOT be graded.
CA1 is an individual assignment and should be worked upon independently. Any form. of plagiarism and/or collusion will be penalised.
Important Note:
Students caught for Plagiarism and/or Collusion will be subjected to heavy penalties.
Plagiarism & Collusion
(extracted from Student Handbook)
3.7.2 Plagiarism/Collusion
Plagiarism is theft of intellectual property. It is a form. of lying, stealing and mistreating others. Students are reminded that plagiarism is a serious offence subject to the Institute’s disciplinary procedures.
Plagiarism can mean any one of the followings:
· direct copying of phrases and/or passages without a reference and/or quotation marks;
· paraphrasing another writer’s work in your written work without citing the reference;
· making a direct reference to an author you have not read although you may have read about him. The correct way is to reference the secondary source you have actually read rather than referencing the original which you have not read;
· copying the work of another student, in part or in whole;
· handing in assignment that has already been submitted for assessment in the same or any other course.
Please note that it is also a disciplinary offence for students to allow their work to be plagiarised by another student.
A student found guilty of any of the above offences will render the student liable for disciplinary actions which may result in the voiding and adjustments to the continuous assessment grade and may result in expulsion from the Institute.
Learning Objective:
· Understanding the tax residence rules and the application of the rules.
· Reading and comprehending information provided to prepare a tax computation for tax resident individuals in accordance with tax rules and concessions.
· Maximizing deductions of expenses, personal reliefs, etc available to individuals.
[All amounts provided in the information are in Singapore dollars]
Alex Ong is a 51-years old Singaporean. He has been working at Software Inc in Country K after completing his studies in Country K. In anticipation of his elder son’s National Service enlistment, he applied for and was offered the Asia regional managing director position at the Singapore subsidiary of Software Inc. He moved back to Singapore on 15 November 2022 with his elder son. His first day of work at Software Singapore Pte Ltd was 1 January 2023. He is married to Amanda, 49-years old and a citizen of Country K. The couple have two sons, 18-years old Christopher and 15-years old Christian. Both sons are Singapore citizens. For the year ended 31 December 2023, Alex derived gains/benefits/income and incurred expenses as given below:
a. Monthly salary of $45,000.
b. Monthly entertainment allowance of $5,000.
c. Contractual bonus of $45,000 for employment services rendered for the year 2023 and which was paid to Alex on 2 January 2024.
d. Alex and his employer make CPF contributions within the statutory limits.
e. Alex is provided with a car by his employer effective from 1/1/2023. The car costs $208,000 (not inclusive of COE of $80,000) and has a residual value of $60,500. The car’s annual running expenses, like road tax, insurance, repairs and maintenance, car park at office, of $28,000 are borne by the employer while Alex will bear the daily running expenses (e.g. petrol, ERP toll charges, ad hoc car park charges).
f. Alex was granted the option to purchase 12,000 shares at $13.50 per share. On 16 July 2023, he exercised the option and bought 8,000 shares when the market price was $14.70.
g. The company reimbursed/paid for the following expenses incurred by/on Alex during the year:
1. Air tickets costing $13,000 to Countries X, Y and Z to attend business conferences.
2. Air tickets costing $28,000 for the family to travel to Country K to attend Christopher’s high school graduation celebrations in Country K in May 2023.