Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Taxation Expert

problem: NML Limited is a public gold mining company which is exploring for gold in the Ballarat and the Bendigo area.

Geoff is the managing director and he looks for your advice as to the deductibility of the given expenditures which were incurred prior to 30 June 2013:

1) The purchase of gold tenements for $259,035 that give the company the right to prospect for gold in that region for three years.

2) The payment of legal fees to settle an argument with an ex-employee who stole confidential information from the company. This cost the company $8,569

3) The company was fined by $25,000 by the Environmental Protection Authority for polluting rivers in the Bendigo and for not rehabilitating the land after exploration. In addition to this, the company paid $12,000 in legal fees in defending the action in court.

4) As an outcome of this, the company sponsored the local football club with $5,000 to try and restore its good name in the Bendigo

5) The company as well paid a lump sum of $55,000 to a contract drilling company. This payment was for next 11-months of services and was paid on 12 May 2013.

The figures above are all exclusive of GST.

REQUIRED:

Please make a statement for each loss/outgoing to Geoff advising him whether the above expenditures are deductible or not for the year ended 30 June 2013. In each statement, you require recognizing the issue and then referring to relevant legislation and/or case law, and apply them in the given factual context. You as well require making a logical conclusion for each expenditure.

Taxation, Accounting

  • Category:- Taxation
  • Reference No.:- M99716

Have any Question? 


Related Questions in Taxation

Words limit 3200-3500 words countquestion 1 10

Words Limit: 3200-3500 Words count Question 1 (10 Marks)   Your client is an investor and antique collector. You have ascertained that she is not carrying on a business. Your client provides the following information of ...

Taxone paragraph of writing is required at a minimum for

Tax One paragraph of writing is required at a minimum for each question. Two paragraphs is the maximum 1. How is a single-member LLC taxed for federal income tax purposes? 2. What is a three-factor formula and how does i ...

Assignment corporation tax accounting projectfollow the

Assignment Corporation Tax Accounting Project Follow the instructions, and make sure you download other required sheet from internet. The only submission required for grading is a complete 2015 U.S. Individual Income Tax ...

Tax1 an s corporation cannot incur a tax liability at the

Tax 1. An S corporation cannot incur a tax liability at the corporation level. a. True b. False 2. S corporation status allows shareholders to realize tax benefits from corporate losses immediately (assuming sufficient s ...

Research paper of gift taxestate tax systemwrite a research

Research Paper of Gift Tax/Estate Tax System Write a research paper explain tax popic of Gift Tax /Estate Tax System the follow must be addressed: 1.what is the tax benefit or tax implication of this topic? 2.Who does it ...

Accounting taxa1 organize an outline that lists the

Accounting TAX A 1. Organize an outline that lists the advantages and disadvantages of making a consolidated return election. Include at least five advantages and five disadvantages of making the election.?2. From a proc ...

Alice johnson social security number 222-23-3334 is a

Alice Johnson, Social Security number 222-23-3334, is a single taxpayer and is employed as a secretary by state University of FloridaShe has the following items pertaining to her income tax return for the current year: R ...

Truefalse on tax1 an s corporation cannot incur a tax

TRUE/FALSE ON TAX 1. An S corporation cannot incur a tax liability at the corporation level. a. True b. False 2. S corporation status allows shareholders to realize tax benefits from corporate losses immediately (assumin ...

Alternative minimum tax please resppond to the

"Alternative Minimum Tax" Please resppond to the following: • Analyze the rules concerning the alternative minimum tax for individual taxpayers. Based on your analysis, recommend at least two changes to the alternative m ...

Partnerships and tax-exempt organizations please respond to

"Partnerships and Tax-Exempt Organizations" Please respond to the following: • Imagine that your new client would like to form a partnership. The client has asked you to assist in avoiding transactions that might result ...

  • 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