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Calculate Mr. Mambo's total annual income from rent, commissions, and dividends.

Accounting

ScanSolve AI Answer

Answer

Sh 408 000\text{Sh } 408\,000

Step-by-step solution

2 steps

Here's how to calculate Mr. Mambo's total income:

  1. Identify all sources of income.

    Mr. Mambo's income sources are:

    • Rent from his houses: Sh 150 000
    • Commissions: Sh 48 000
    • Dividends on shares: Sh 210 000
  2. Calculate the total annual income.

    Total income is the sum of all these sources.

    Total Income=Rent+Commissions+Dividends\text{Total Income} = \text{Rent} + \text{Commissions} + \text{Dividends} Total Income=Sh 150 000+Sh 48 000+Sh 210 000\text{Total Income} = \text{Sh } 150\,000 + \text{Sh } 48\,000 + \text{Sh } 210\,000 Total Income=Sh 408 000\text{Total Income} = \text{Sh } 408\,000

    To calculate the income tax Mr. Mambo should pay, the specific income tax rates or tax brackets are required, which are not provided in the question. Assuming these rates would be necessary to determine the final tax amount.

    The total annual income for Mr. Mambo is Sh 408 000\text{Sh } 408\,000.

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