Hey Jimmy I have a new one to be done ASAP thank you
Question 2 (10 Marks)
Mick Viduka a resident taxpayer holds shares in several Australian companies as investments. The following transactions relate to distributions from these companies:
• On 1 August 2016, Mick received a cheque for $5,600 being a fully franked dividend from ABC Ltd.
• On 15 November 2016, Mick received a cheque for $1,800 being an unfranked dividend from
DEF Ltd.
• On 20 December 2016, Mick received a statement from GHI Ltd that a fully franked dividend of $3,500 had been used to acquire an additional 350 shares (Mick participates in the
companys dividend re-investment program).
• On 17 February 2017, Mick was advised that he has received 300 shares from JKL Ltd from a bonus share issue. The market value of JKL shares on that date was $10 per share.
• On 24 June 2017, MNO Ltd declared an unfranked dividend of 10 cents per share. Mick holds 14,000 shares in MNO and received the dividend when it was paid on 9 July 2017.
• On 27 June 2017, Mick received a cheque from PQR Ltd dated 21 June 2017 for $700. The cheque is for an unfranked dividend, but Mick forgot to bank the cheque until 19 July 2017.
Mick does not have any other assessable income or deductions.
Calculate Micks taxable income for the 2016/17 tax year.
Calculate Micks net tax payable or refundable for the 2016/17 tax year.
Question 3 (10 Marks)
For each of the following resident individual taxpayers, state whether there are any amounts that would be treated as deductions. Give reasons.
(a) Ernie pays $ 1,900 for an electricity account for his business premises.
(b) Ian pays his home electricity bill of $700. He operates his business from his shop premises, but sometimes attends to some paperwork and planning in his living room while watching television.
(c) Janice purchases a computer for her business costing $3,400 .
(d) Fiona pays $ 750 for her home phone bill. She has kept records estimating that 60% of her calls relate to her business.
(e) Stan pays $200 every week to have his home cleaned as he is too busy operating his business. He does not conduct his business from home but Stan argues that if he didnt hire a cleaner, he would not be able to run his business properly.
(f) Rita pays a total of $ 12,000 in child care fees which enables her to continue her full-time job as a radiologist.
(g) Tara pays $ 2,400 for a yearly train ticket which enables her to travel from her home to work each day.
(h) Nicole pays $6,000 per year in board to her parents. She takes a lot of work home from her job and completes it at a desk in her bedroom.
(i) Stu is employed as a legal assistant. He is currently studying law at the University of Western Australia, and during the year has paid $7,900 for course fees and textbooks.
6) Ron is employed as an engineer. He hates his job and is currently studying towards a diploma in accounting. During the year he paid $1,420 in course fees and textbooks.
Question 4 (10 Marks)
Penni Hale is employed as an interior designer. During the 2016/ 17 tax year, she received a gross salary of $75,000 and a car allowance of $3,000 from her employer (PAYG tax withheld of $18,730). Penni has private hospital cover. During the course of the year, Penni used her 1,300cc Kia for a
number of trips to clients, suppliers and trade shows. A logbook disclosed 44% business use. Odometer readings show a total of 35,200 kilometres travelled during the year.
Payments made by Penni included:
Registration and Insurance $1,100
Tyres 430
Petrol 2,800
Loan Repayments (interest $600) 3,600
Car Washes 200
Parking Meters (at clients premises) 400
Taxi Fares to clients offices while her car was being serviced 80
The vehicle originally cost $16,000 and has an opening adjustable value of $13,000. Penni calculates depreciation of the car using the prime cost method over 8 years.
(a) Determine the maximum deduction available to Penni for car expenses.
(b) Calculate Pennis taxable income for the 2016/17 tax year.
(c) Calculate tax payable for Penni for the 2016/ 17 tax year.