1. Andrea has taxable income of $46750 and is unmarried. She is eligible to pay Medical Levy. What is Andreas Medical levy liability for the year ending 30 June 2018? Do not consider the medical Levy Surcharge.

Select one:

$701.25

$500

$467.50

$935

2. In the current income year, Mary has assessable income of $85,000 and deductions of $16,000. What is her taxable income?

Select one:

85,000

69,000

16,000

101,000

3. Shipping Co Ltd is a shipping company that was incorporated in America. An Australian resident holds the majority of shares in Shipping Co Ltd. He had the power to remove the three directors resident in America and no resolution has taken effect without his approval. Shipping Cos main business activity is the preparation of contracts for shipping which is undertaken by the Australian resident shareholder. In which country is Shipping Co Ltd a resident?

Select one:

a. Australia

b. America

c. Both

4. A taxpayer receives instalment payments for the sale of a house (ie a capital asset). How are the instalment payments to be categorised?

Select one:

a. Capital gain

b. Ordinary Income

5. Which of the following amounts are not classified as ordinary income?

Select one:

a. Fees received by an accounting firm

b. Rent received in relation to a lease

c. Reimbursement of a work related expense

d. Proceeds from the sale of a house

Question 8

What elements must be present for an amount to constitute ordinary income under s 6-5 of ITAA 1997?

Select one:

a. Benefit is cash or cash convertible and income according to ordinary concepts

b. Benefit must be cash or cash convertible; it must have a nexus with an income earning activity; benefit must not be in the nature of capital.

c. Nexus with an income earning activity

d. Must not be statutory income and must not be capital

Question 9

Elizabeth is an accountant at a Big 4 accounting firm. Which of the following expenses would be deductible for Elizabeth?

Select one:

a. Taxi fare between the firm's office and a client's premises

b. HELP fees relating to her accounting degree, which she is still paying of annually

c. Travel costs between home and work

Question 10

Seng has a portable notebook computer which cost $295. He uses the portable notebook 40% of the time for private purposes. How much is Seng entitled to deduct in relation to the portable notebook computer?

Select one:

$295

$177

$118

Nil