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Lee was a businessman in Suva. He has some commercial properties in the heart of...

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Accounting

Lee was a businessman in Suva. He has some commercial properties in the heart of Suva which have a total worth of $6,000,000. He was survived by one son and one daughter. As per his last will, upon his death, all the property will be under a trust named Lee &Family Trust, managed by his son Lin. He will have a share of 30% in while other daughter, Lina will be having remaining shares. During the year 2019, the following are the financial transactions:

  • Commercial properties are rented out which generated $150,000 rent during the year
  • Form the business they earned $130,000
  • They have investment in Pacific Company worth $145,000 and return is 3.5% per annum
  • For the rented property, costs incurred were:
    • Insurance $4,500
    • Depreciation $13,000
    • Local Council rate $3,000
    • Security of the premises $6,000

Required:

  1. Calculate Income Tax of beneficiary Lin and Lina for the financial year ended on 31st December 2020.

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