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

A particular airplane will reach liftoff at a speed of 120

A particular airplane will reach liftoff at a speed of 120 km/h. (a) What minimum constant acceleration does the airplane require for it to liftoff after a takeoff run of 280 m? (Enter the magnitude only.) (b) How long d ...

In a car lift is used in service station compressed air

In a car lift is used in service station, compressed air exerts a force on a small piston that has a circular cross section and radius of 5cm. This pressure is transmitted by a liquid to a piston that has a radius of 15c ...

1 a scale model of an object m 100 kg a 35 cm2 v 40 cm3

1. A scale model of an object (m = 100 kg, A = 35 cm 2 , V = 40 cm 3 ) is made such that the dimensions of the scale model are 5 times larger than the original object, but the scale model is identical to the object in ev ...

Explain why cigarettes are effective delivery systems for

Explain why cigarettes are effective delivery systems for nicotine.

What are matter de broglie waves if matter has a wave

What are Matter (de Broglie) Waves? If matter has a wave nature, why is this wave-like characteristic not observable in our daily experiences? How can matter have a dual wave-particle nature? (300 words)

1 how many silicon atoms are there for the energy band

1. How many silicon atoms are there for the energy band diagram shown in Figure. Is the number of levels in the conduction and valence bands drawn consistently and why? 2. How many energy levels are there in the Ge valen ...

Fatty deposits in blood vessels pose a health risk chemical

Fatty deposits in blood vessels pose a health risk. Chemical agents added to the blood can increase the solubility of the fatty deposits in blood, thereby providing a means to dissolve the fatty deposits in situ. To expl ...

1 suppose that g and h are continuous on a b and

1. Suppose that g and h are continuous on [a, b] and differentiable on (a, b). Prove that if g'(x) ≤ h'(x) for a 2. Deduce the Constant Function Theorem from the Increasing Function Theorem and the Decreasing Function Th ...

The saint louis arch can be approximated by using a

The Saint Louis Arch can be approximated by using a function of the form y = b - a cosh(x/a). Putting the origin on the ground in the center of the arch and the yaxis upward, find an approximate equation for the arch giv ...

Explain how flight is achieved nbspplease provide an

Explain how flight is achieved.  Please provide an example and use  three concepts or laws to support  your explanation and example.

  • 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