1:In which of the following transactions will the recipient be least likely to have to include an amount as
a. A business taxpayer receives a new photocopier valued at $1,200 with an effective life of four years in the course of carrying on their normal business activities.
b. A total of $500 worth of non-cash business benefits received by a person carrying on a business where the benefits were derived in the normal course of business.
c. A business taxpayer receives a cash payment for services rendered.
d. A business taxpayer receives a free holiday on the Gold Coast valued at $1,500 in the course of carrying on their normal business activities.
e. A taxpayer receives a cash payment for services rendered.
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2:Which of the following statements is least likely to lead to a conclusion that the taxpayer was undertaking the mere realisation of a capital asset?
a. The taxpayer developed the land to the extent necessary to get local council approval and no more.
b. The taxpayer set up their own on-site sales office to assist with the sale of the blocks of land.
c. The land was surplus to the taxpayer's needs in carrying on the taxpayer's manufacturing business.
d. The land was sold simply by listing it with a local real estate agent.
e. The taxpayer continued his or her normal business activities and was not directly involved in the sale of the land.
3:Mr Hyde operates a retail business and has incurred the following expenses during the current year of income. Repainting of the interior of the business premises costing $1,700. The old paintwork had become faded. Servicing costs of $600 performed on his motor vehicle that is used 60% of the time for business purposes. Concreting of a car park at his business premises at a cost of $5,000. The car park previously consisted of loose gravel. One of his cash registers was smashed by robbers during the year and it would have cost $300 to have it repaired. Instead, Mr Hyde installed a new cash register costing $2,400 on 1 May CIY. No insurance moneys were received. What amount can Mr Hyde claim for repairs under s 25-10 ITAA97?
4:Nicholas is a medical doctor who purchased an air-conditioner for his medical practice. He is registered for GST and paid $1,650 (including GST) for the item. He now holds the quotation. What amount of GST may he claim as an input tax credit?
5:Vincent, an Australian resident, works full-time for Jenkins and Co, Engineers and Surveyors, and is undertaking a Bachelor of Engineering degree at the University of Southern Queensland on a part-time basis. Assuming that the relevant nexus exists to earning assessable income, what amount could he claim in total for self-education expenses, given that he has incurred the following expenses during the 2017 income year: stationery $230; student guild fees $55; HELP fees of $2,300; and depreciation of $1,000 on a computer he purchased in May 2015 and which he uses exclusively for study purposes?
6:Which of the following outgoings is not a deductible expense under s 8-1 ITAA97?
a. The cost of food and drink paid for by a professional footballer to enable him to gain weight to improve his prospects of being a better player and earn more income.
b. Interest payments on a loan taken out originally to purchase a fast food business. The business was unsuccessful and has been closed, but the loan is yet to be repaid.
c. The cost of travelling from one place of work to another where bulky goods are transported between the two places.
d. Safety gloves and glasses paid for by a sheet metal worker.
e. The cost to a medical doctor of leasing a paging unit to enable patients to contact him in emergencies.
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7:Magda is a resident taxpayer in Australia who is married to Boris who is presently unemployed. Magda has a HELP liability of $5500 which she incurred while completing her arts degree at the University of Berry. Her taxable income in the current year is $27,000 and she is provided with a reportable fringe benefit of $27000. Her employer also paid reportable employer superannuation contributions of $3400 into her superannuation fund. Magda owns a residential rental property where the deductible expenses associated with the property exceed the income from the property by $3500. Magda also owns a commercial property where the assessable income associated with the property exceeds the allowable deductions by $5600.What amount of HELP repayment will she be required to make under the tax system for the income year ended 30 June 2018?
a. $2 992.50
b. $2 380.00
c. $2 296.00
e. $5 500.00
8:Josh and Jill have two children: James (9 years) and Jen (11 years). Josh has a taxable income of $47 000 and has reportable fringe benefits of $136 000, while Jill is a stay-at-home mum. The family's total liability for the Medicare levy for the year ended 30 June 2018 is
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9:In relation to income which of the following statements is most correct?
a. A cash award received by a sportsperson from a television company that is not their employer will not be assessable income of the sportsperson.
b. An unsolicited gift motivated by goodwill arising out of a previous employment will always be ordinary income.
c. A payment by an employer to an employee who was overseas visiting a sick relative will be assessable. The payment was to compensate the employee for lost wages while they were overseas and did not work during this time.
d. Voluntary payments for one-off events are more likely to be assessable than regular payments relied on by the taxpayer.
e. A tip received by a waitress in a restaurant will not be income because it has not been received from her employer.
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