Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Taxation Expert

problem 1:

NML Ltd is a public gold mining company that is exploring for gold in the Ballarat and the Bendigo region.

Geoff is the managing director and he seeks your advice as to the deductibility of the following expenses which were incurred prior to 30 June 2013:

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

2) The payment of legal fees to settle a dispute 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 the rivers in 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 a result of this, the company sponsored the local football club with $5,000 to try and restore its good name in Bendigo

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

The above figures are all exclusive of GST.

REQUIRED:

Please prepare a statement for each loss/outgoing to Geoff advising him whether the above expenses are deductible or not for the year ended 30 June 2013. In each statement, you need to identify the issue, then refer to relevant legislation and/or case law, and apply them in the given factual context. You also need to make a logical conclusion for each expense.

Taxation, Accounting

  • Category:- Taxation
  • Reference No.:- M99149

Have any Question? 


Related Questions in Taxation

Question 1corporations have been scrutinized as to the

Question 1 Corporations have been scrutinized as to the recording and valuation of taxes they owe. The determination of how much they will pay is a combination income and expenses they report. There are many tax rules an ...

Taxation research and communicationthe current tax law

Taxation Research and Communication The current tax law system in the United States has emerged over many years from statutory, administrative, and judicial sources. These sources are continually changing and new laws ar ...

Tax assignmenta1what code section discusses partnership

TAX Assignment A.) 1. What Code Section discusses partnership formation under the Internal Revenue Code? 2. How does this Section differ from a corporate formation under Section 351? 3. What does it mean when we say that ...

Tax projectour tax project has changed slightly due to the

TAX PROJECT: Our tax project has changed slightly due to the Presidential Election Year. Your project is to prepare a document, no longer than five pages, reviewing and addressing the following: - Tax policy of Democrati ...

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 ...

Accounting questionearthfriendly inc an irc sec 501c3

Accounting Question: EarthFriendly, Inc., an IRC Sec. 501(c)(3) organization, incurred lobbying expenses of $150,000 and exempt purpose expenditures of $1.2 million in carrying out its exempt mission. What are the tax co ...

Tax research paperthe topic is listed below try to

TAX RESEARCH PAPER The topic is listed below. Try to incorporate any applicable Code, Regulations, Revenue Rulings, and court decisions. The paper is to include a Title Page and a Bibliography at end of the paper. The bo ...

Tax memoentity formationyou are a cpa in private practice

Tax Memo:Entity Formation You are a CPA in private practice and a client of yours comes into your office and tells you he is starting a new business. He tells you that he will be starting a bungee jumping school. He says ...

Complete the previous template that has the respective tax

Complete the previous template that has the respective tax forms and schedules required to complete the return. Complete all of the parts of your respective business tax return for which there is information. In the spac ...

Assignment1you are the tax director for a fortune 500

Assignment 1. You are the tax director for a FORTUNE 500 company and the new CFO comes to you and asks you what ASC 740 is? He also asks you to tell him what a deferred tax asset is and when it can be reflected on the co ...

  • 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