Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Physics Expert

problem: Wesley is a self-employed website designer. He designs manuals and websites. He is not registered for GST. He is as well employed part-time as a book keeper for a manufacturing company. His payments and receipts for the year ended 30 June 2013 are as shown below:

Receipts:

a) $252,000 Fees 
b) 30,000 total Salary (after employer had withheld tax installments of $15,000).
c) 18,230 Rental income from the investment property.
d) 6,000 Dividend franked to 60% received from an Australian resident public company.
e) 1,000 Medical expenditure refunds from the Medicare.

Payments:

$3,000 Rates and Insurance on income producing the property.

16,000 Interest on the money borrowed to buy the income producing property.

4,569 Cost of hospital, dental expenditures for Wesley and his wife May Ling.

1,000 Dentist fees paid for the Wesley’s son who is 23 years of age and a full-time university student. Son has income of $7,000.

30,000 Repairs to the leasing property, which comprised of $10,000 to paint outside of the house and $20,000 to improve the kitchen with better fittings. The painting was due to normal wear and tear.

5,000 Borrowing expenditures relating to a new loan on the rental property that is used exclusively for income producing purposes? The loan is for 6-years and start on 1 November 2012.

1,500 Travel to and from work by train.

2,000 Rates on family home (utilized 10% for work purposes).

1,000 Legal fees paid to the solicitor to gather outstanding trade debts from his business.

2,000 Donations ($1,000 to the Red Cross and $1,000 to the Collingwood Football Club).

1,000 Paid to his wife for 2 hrs work. The normal pay for such a job is $275.

36,547 Purchase of materials, inks and so on to produce manuals.

NOTES:

a) His trading stock of the manuals on hand at the end of the year was valued at $27,000 (at cost price), $28,000 (at replacement price) and $29,000 (at market selling value). The opening stock of manuals was valued at $30,000.

b) The Tax Depreciation Schedule for existing assets as at 30 June 2013 exhibits depreciation of $22,000.

c) The given assets were purchased throughout the year:

Printer $2,569 on 12 February 2013. Its effectual life is 5-years.
Apple Mac $3,590 on 23 September 2012. Its effectual life is 3-years.

REQUIRED:

On the basis of information given you and supposing that there are no other conditions affecting his tax liability, describe the accessibility or deductibility of the above receipts or expenses and find out Wesley taxable income for the 2012/13 income tax year.

In your answer you should provide references to the relevant parts of the ITAA 1936 and ITAA 1997, case law, Tax Rulings or Tax Determinations. You must avoid the possible incidence of GST while answering the above needs. 

Physics, Academics

  • Category:- Physics
  • Reference No.:- M99721

Have any Question? 


Related Questions in Physics

The potential energy of an object attached to a spring

The Potential Energy of an object attached to a spring whose elastic constant is K is given by the formula. The quantity x is the displacement from the equilibrium condition. Assume that K = 30 N/m and x = 0.7 m: Determi ...

In no less than 100 words- what are some of the needs

In no less than 100 words- What are some of the "needs" people seek in joining groups as described in Ch. 3 of the text. Which of these needs motivated you to join a group?

What would be your predictions regarding major social

What would be your predictions regarding major social changes over the coming years (United States of Globally) as we continue in the 21st century? These may be changes in social interaction as social media continues to ...

Astronomy and critical thinkingyou are standing within a

Astronomy and Critical Thinking: You are standing within a small town on the east coast of the United States looking westward, with one big difference from normal reality: Instead of the spherical Earth giving you a hori ...

During the hypothetical contact transient of the three

During the hypothetical contact transient of the three layers of the four MOS structures in problem below, are electrons transferred from the gate conductor to the Si or vice versa? Explain the detailed sequence in the s ...

The height of a sand dune in centimeters is represented by

The height of a sand dune (in centimeters) is represented by f(t) = 700 - 3t 2 , where t is measured in years since 2005. Find f(5) and f'(5). Using units, explain what each means in terms of the sand dune.

What would be the best way to extract the entropy from the

What would be the best way to extract the entropy from the Monte Carlo simulations? What would be the best way to obtain the entropy and the heat capacity from the partition function computation?

A 162 g mass is hung on a spring as a result the spring

A 162 g mass is hung on a spring. As a result the spring stretches 19.5 cm. If the object is then pulled an additional 3.0 cm downward and released, what is the period of the resulting oscillation? Give your answer in se ...

A wetted-wall column as illustrated in figure is used as a

A wetted-wall column, as illustrated in Figure, is used as a mass-transfer device for transferring ethyl acetate liquid to an air stream by a mass-transfer limited evaporation process. At the current conditions of operat ...

Estimate how many binary low-density parity-check codes

Estimate how many binary low-density parity-check codes have self-orthogonal duals. [Note that we don't expect a huge number, since almost all low-density parity-check codes are ‘good', but a lowdensity parity-check code ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro