1. Case (Individuals): 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.

2. Annual income 1850*12/5 = 4440$. Net income = 4,440$ Less: Exemption -Resident 3000$ -Husband (dead) 0 -Sons 1500 (3*500) -Rent 1700 Total Exemptions= 6200$ So, income tax is 0$. Because the exemptions are more than the Net income. Answer:

3. Partnership Case (8): A taxpayer is a partner in a company own 50% of the capital,and he has monthly salary 2500 NIS for managing, he is married and has three sons one of them study in the university and the others in school. The taxpayer lives with his father and mother and take care of them, he lives in a rent house 500 NIS monthly. The company results for the ended year as follow: revenue and expenses report Dollar = 4 NIS Required : Calculate the income tax. Dr(NIS)Cr(NIS) Purchases250,000Sales525,000 Begging inventory 125,000 Ending inventory 60,000 Selling expenses 17,500 Administrative expenses (without the salaries of partners) 7,500 Salaries for partners 50% 60,000 Rent Expenses Rent Expenses7,500

4. Sales525,000 Cost of goods sold 315,000 Purchases250,000 Begging inventory 125,000 Ending inventory (60,000) Gross income 210,000 Deductions92,500 Administrative expense 7500 Selling Expenses 17,500 Rent Expenses 7500 Salary for two partners 60,000 Net income 117,500 Net income for each partner is 117,500*50% = 58,750 Total income for taxpayer 58,750+ 30000 salary (2500*12)= 88,750

5. Annual income 88,750/4= 22,187.50$ Exemptions9500$ Resident3000$ Wife500$ Son *2 1000$ University student 2500$ Father and mother 1000$ Rent house 500*12/4 1500$ Taxable income 12,687.50 10,000*8% =800$ 2687.50 * 12% = 322.50 Paid income tax 1122.50

6. Assume the given information for sharing company ( Cooperation )! What is the main difference? The same situation without exemptions Net Income 117,500/4 = 29,375$. income tax: 29,375 *15% =4406.25