Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Taxation Expert

Question 1

The Lotteries Commission conducts an instant lottery called 'Set for Life' under which a winner who scratches three 'set for life' panels wins $50,000 each year for 20 years. The first $50,000 is payable as soon as the winner is notified, and later amounts are payable on the first anniversary of the first payment. In the event of the death of the winner, the Commission may pay any outstanding amounts to the deceased's estate.

Requirement:
Is the annual payment income? Give reasons for your decision

Question 2

Corner Pharmacy is a chemist shop. It provides no credit sales but accepts major credit cards. It sells items off the shelf and the proprietor fills prescriptions for cash and for payments made under the Pharmaceutical Benefits Scheme (PBS).

Three assistants are employed. The following financial data is provided:

Cash sales -----------------------------

$300,000

Credit card sales-----------------------

$150,000

Credit card reimbursements-----------

$160,000

PBS:

 

- Opening balance ---------------------

$25,000

- Closing balance ----------------------

$30,000

- Billings -------------------------------

$200,000

- Receipts ------------------------------

$195,000

Stock

 

- Opening stock------------------------

$150,000

- Purchases-----------------------------

$500,000

- Closing stock .............................

$200,000

Salaries --------------------------------

$60,000

Rent........................................................

$50,000

Requirement:
On the assumptions that an accrual basis applies and the cost of sales and other outlays are allowable deductions for tax purposes, calculate the pharmacy's taxable income.

Question 3

What principle was established in IRC v Duke of Westminster [1936] AC 1? How relevant is that principle today in Australia?

Question 4

Joseph (an accountant) and his wife Jane (a housewife) borrowed money to purchase a rental property as joint tenants. They entered into a written agreement which provided that Joseph is entitled to 20% of the profits from the property and Jane is entitled to 80% of the profits from the property. The agreement also provided that if the property generates a loss, Joseph is entitled to 100% of the loss. Last year a loss of $40,000 arose.

Requirement:
How is this loss allocated for tax purposes? If Joseph and Jane decide to sell the property, how would they be required to account for any capital gain or capital loss?

Taxation, Accounting

  • Category:- Taxation
  • Reference No.:- M93111407
  • Price:- $50

Priced at Now at $50, Verified Solution

Have any Question? 


Related Questions in Taxation

Assessment type financial activity bas statement and

Assessment Type: Financial Activity, BAS Statement and Report Task A- Record Asset Valuation 1. Read through the scenario provided. 2. Review Packet Packaging's organisations chart of accounts. 3. Using the General Journ ...

Question 1you are working as a tax consultant in mayfield

Question 1 You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a business. Your client provides the following informati ...

Taxation theory practice amp law assignment -question 1

Taxation Theory, Practice & Law Assignment - Question 1 - You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a busines ...

Partnership taxable incomepartner d is a 10 percent general

Partnership Taxable Income Partner D is a 10 percent general partner in ABCD Partnership. The partnership's financial records for the current tax year reveal the following: Gross receipts from sales . . . . . . . . . . . ...

Tax law question - mary was born and raised in central new

TAX LAW QUESTION - Mary was born and raised in central New South Wales. She moved to Sydney to attend University in 2010, and graduated with a Bachelor of Commerce from the University of Sydney in December 2013. In 2009, ...

Business taxation assignment -assignment question - carson

BUSINESS TAXATION ASSIGNMENT - ASSIGNMENT QUESTION - Carson Pty Ltd ("Carson"), an Australian resident company for tax purposes, carries on numerous business activities. In the first half of 2014, Carson has thoughts of ...

Question - corporate taxation please respond to the

Question - "Corporate Taxation" Please respond to the following: Analyze the significant rules concerning the manner in which corporations treat the dividends that they are paying. Based on your analysis, recommend at le ...

Question 1the lotteries commission conducts an instant

Question 1 The Lotteries Commission conducts an instant lottery called 'Set for Life' under which a winner who scratches three 'set for life' panels wins $50,000 each year for 20 years. The first $50,000 is payable as so ...

Taxation law amp practice assignment -part 1 -on 1 july

Taxation Law & Practice Assignment - Part 1 - On 1 July 2016 Frank Lloyd commenced business as an architect. He operated as a sole proprietor from a converted garage at the rear of his residence. Much of his work consist ...

Taxation theory practice amp law assignment -question 1 -

Taxation Theory, Practice & Law Assignment - Question 1 - You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a busines ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As