1. Look into Article No:8 & 9

2. Case (5) : Revenue and expenses accounts for auditing office: expensesrevenue 10,000salaries28,000 accounting fees 8000rent12,000 auditing fees 7000 hospitality expenses 15,000 feasibility study fees 3000 water and electricity 5000 bad debits 1000 Loss of Exchange computer 800 phone expense 500 Allowance for Doubtful account. 4000 training expenses 7000 donation for ministry 8700 net profit 55,000total55,000total

3. You have the following information: 1- cost of computer 1000$ and accumulated depreciation 300$ and the exchange price for old 100$ and the new cost 1000$. 2- tax officer accept 60% of phone expense and the bad debits documented with judgment. 3- the office owned by Mr. Haider and he is married and has 8 sons and one university student. Required: calculate the income tax to be paid annually and monthly.

4. answer expensesrevenue 10,000Salaries28,000 accounting fees 8000Rent12,000 auditing fees 0 hospitality expenses 15,000 feasibility study fees 3000 water and electricity 1100 bad debits(55000*2%) (item 6 of article 9). 600 Exchange computer loss 480 phone expense(800*60%) 0 Allowance for Doubtful account. 550 training expense (55000*1%) (item 10 of article 8). (item 10 of article 8). 0 donation for ministry 31,270 net profit 55,000total55,000total

5. Calculated net profit before hospitality expenses and donation =31,270 Deduct donation = (31270*20%) = 6254 (item 3 of article 9). Deduct hospitality expenses = (31270*3%) = 938 (item 5 of article 9). Taxable income=24,078 Deduct exemptions: Resident=3000Wife=500 Sons (500*8)= 4000 University student = 2500 Total = (10000) Net taxable income=14078 (10000*8%+ 4078*12%) = 800+ 489.36 = 1289.36 annually 1289.36/12= 107.44 monthly.

6. Case (6) : Dr. Yahia works in his own private clinic and you have the following information on 31-12-2007 The total gross income = 13,0000 NIS And paid the following expenses: -Electricity bills 1800 NIS annually. -Water bills 600 NIS annually. -Phone bills 2160 NIS annually. -In January 2007 bought clinic equipment (CT) amounted 5000$ and the depreciation rate is 7% annually. -Huda works as a nurse with monthly salary 900 NIS -Akram works as an office assistant with monthly salary 600 NIS

7. Dr. Yahia married with Dr. Sozan and she work in the ministry of health. They have three sons, Ahmed student in the 6th class and Amjad student in Palestine university with certificate document, and Rana married and lives with here husband. Dr. Yahia live with his father and he has pension from Palestinian Authority. They live in a rent house 200$ monthly paid by Dr. Yahia If you know that Dr. Yahia has no income except 200$ monthly salary from (UN) paid for his medical consulting. Required: calculate the following: 1- total gross income. 2- taxable income. 3- The deductions and exemptions. 4- the accrued value of tax annually and monthly. The exchange rate for dollar 4.5 NIS.

8. 1- The total gross income from all recourses = 130000/4.5= 28888.8$ 1- The total gross income from all recourses = 130000/4.5= 28888.8$ 200$* 12 = 2400$ 200$* 12 = 2400$ Total income = 31288.8 Total income = 31288.8 Gross taxable income = 28888.8 Deductions Electricity 1800/ 4.5 = 400$ Water 600/ 4.5 = 133$ Phone 2160/ 4.5 = 480$ Depreciation of CT 5000$* 7% =350$ Huda salary = 900*12/ 4.5 = 2400$ Akram salary = 600*12/ 4.5 1600$ total of deductions = 5363$. total of deductions = 5363$.

9. Exemptions: Resident 3000$ Wife 0$ Sons 500$ University student 2500$ Married daughter 0$ Rent of house 2000$ (200*12=2400) max 2000$ Total of exemption 8000$ Total of deductions and exemptions = 5363+8000 =13363$ Net taxable income =28888.8 – 13363 = 15525.8$ Annual income tax = (10000*8% + 5525.8*12%) 800 + 663 = 1463$ 800 + 663 = 1463$ Monthly income tax = 1463/12 = 121.9$ 121.9 *4.5 = 548.6 NIS 121.9 *4.5 = 548.6 NIS

10. Case (7) : Mrs. Eman is a relict woman, she works in private company with monthly salary 1850 NIS, She has three sons and lives in a rent house 8500 NIS annually Required: calculate the income tax to be paid (the exchange rate 5 NIS) Note : in this case we have family woman, and she will have all the exemption have been given to the family man.

11. Annual income 1850*12/5 = 4440$. Deduct the exemption Resident 3000$ Husband (dead) 0$ Sons 1500$ (3*500) Rent 1700$ Total 6200$ So tax is 0$ because the exemption are more than the income. Answer: