Amanda Li, a Singaporean, is Executive Director of a local manufacturing company and sits on the Food and Nutritional Company’s Board of Directors as a non-executive director.
Amanda Li received the following in the 2016:
Royalty Income S$52,520
Related Expenses Incurred
Printing and Stationary S$15,500
Advertisement and Publicity S$8,600
Legal Fees S$2,480
Description Property 1 Property 2
Rental Income S$4,500 per month S$3,600 per month
Property Tax S$330 per month S$280 per month
Maintenance Fees S$190 per month S$130 per month
Major Renovation Nil S$15,000
Repairs S$1,600 Nil
Wall Painting S$2,800 Nil
COR167 Tutor-Marked Assignment
Date Description Market Price
5 October 2015 Option Exercise Price S$2.30
12 July 2016 Option Exercised S$3.50
19 August 2017 Sold the Shares S$5.00
WEALTH ACCUMULATION – RETIREMENT PLANNING
(a) Identify and explain to Amanda Li which of her following incomes will be subjected to tax in Year of Assessment 2017.
(i) Director’s Fees of S$100,000
(ii) Runway model assignment income of S$85,000 from Hong Kong modelling company
(iii) Lecturing income of S$45,000
(iv) Big Sweep winning of S$150,000
(b) Compute Amanda Li’s tax liabilities for the Royalty income.
(c) Determine Amanda Li’s income from the two properties for the Year of Assessment 2017.
(d) Calculate the amount of Share Option benefit assessable on Amanda Li.
(a)(i) What is an Advance Medical Directive and how does it work?
(a)(ii) List the circumstances under which a doctor will certify that the person is terminally ill.
(a)(iii) How can Amanda revoke her AMD when she is unable to write?
(b)(i) Determine the amount Amanda can contribute to her own Supplementary Retirement Scheme Account and state the eligibility criteria
(b)(ii) What is the amount Amanda can use to top up Sandra’s CPF Account? State the reason.
(c) List FIVE (5) options available for Amanda to bridge the retirement shortfall (i.e. the additional funds needed) between her current retirement investment and her retirement goals.
(a) Explain the accuracy of the following statement.
“Trust is the disposition of assets upon death of grantor while Will helps the settlor with the disposition of assets before his death.
(b)(i) Is Amanda’s Will valid after her marriage? Explain.
(ii) When should Amanda review her Will?
(c) Upon her Death, Amanda wishes to give her assets shown below to the stated beneficiaries. You are to advise her about the most effective way of planning her estates:
(i) Her Pine Grove property to her parents
(ii) Whole Life Insurance Policy’s Proceeds to Brad and Sandra
(iii) Saving and Fixed Deposit Amount to charity
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