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

Chicken eggs possess a hard porous shell of calcite mineral

Chicken eggs possess a hard, porous shell of calcite mineral. Cylindrical pores of 10micron diameter running through the 0.5mm thickness of the shell permit the exchange of gasses to the inner membrane and egg yolk. A ty ...

What is the increase in entropy when one gram of ice at

What is the increase in entropy when one gram of ice at 0° C is melted and heated to water vapor at 500° C?

In new england the horizontal component of the earths

In New England, the horizontal component of the Earth's magnetic field has a magnitude of2.8 × 10 -5 T. An electron is shot vertically straight up from the ground with a speed of4.0 × 10 6 m/s.What is the magnitude of th ...

The distance s of a moving body from a fixed point is given

The distance, s, of a moving body from a fixed point is given as a function of time, t, by s = 20e t/2 . (a) Find the velocity, v, of the body as a function of t. (b) Find a relationship between v and s, then show that s ...

The hubbles discovery of the expansion of the universe led

The Hubble's discovery of the expansion of the universe led astronomers to conclude that our universe must have started with an extreme conditions event called the Big Bang. The Big Bang theory rests on the general relat ...

A packed tower has been designed to strip component a from

A packed tower has been designed to strip component A from an aqueous stream into a counter-flowing air stream. At a given plane in the tower, the concentrations of the two adjacent streams are p A ,  G  = 4 × 10 3  Pa a ...

Give the effective self-exciting capacitance at 1900 rpm

Give the effective self-exciting capacitance at 1900 rpm and 60 Hz of an induction generator having a rated self-exciting capacitance of 180 μF and a load connected across its terminals of RL = 50 Ω and L = 0.05 H. What ...

Answer the question posed in problem again but this time

Answer the question posed in Problem again but this, time give a more detailed and less qualitative or more quantitative but concise (itemized) description of the fundamental reasons. Problem:- What is the single most im ...

An alternating current i i0 cosomega t nbspflows down a

An alternating current I = I_0 cos(ω t)  flows down a long straight wire and returns along a coaxial conducting tube of radius a. (a) In what direction does the induced electric field point? (b) Assuming that the E-field ...

A flat steel plate is 20 m length and 20 m width initially

A flat steel plate is 2.0 m length and 2.0 m width initially contains a very thin coating of lubricating oil used in a manufacturing process. An engineer is considering the feasibility of using hot forced air convection ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen