1- On 30 June 2017, a small business entity takes advantage of an early payment discount by paying $10,000 in advance for business services to be provided from 1 August 2017 to 31 July 2018. How much can be claimed as a deduction for the income year ended at 30 June 2017, 2018 and 2019 respectively? You are required to show all the working in your answer with deductions

2- Brian, single, is a resident for tax purpose. He is your client for many years and now provides you the following information to complete his 2017-18 individual tax return.

Income: Gross salary (from PAYG Summary): $87,500 Tax withheld (from PAYG Summary): $20,325 Allowances - Travel (from PAYG Summary): $1,250 Interest from Term Deposit A/C #123456: $400 Expenses The following expenses were actually incurred and paid during the year.

Work-related travel: $1,000 Union fees: $450 Dry cleaning of work uniform: $150 Other work-related expenses with invoices supported:$7,700

Other information

Private health fund membership was cancelled on 1 July of the income year. Use the 2017/18 tax rate table to calculate the net tax payable or refundable for Brian. Undertake your own research from ATO website to determine if John is entitled to low income rebates, and liable for Medicare levy and Medicare levy surcharge, and include the necessary calculation and explanation in your answer. You must show your calculation step by step and provide reasons for your treatment.

show explanation Explanation and Calculation

*Assessable income

*Deductions

*Taxable income

* Gross tax payable

*Medicare levy

*Medicare levy surcharge (MLS)

*Low income rebate

*Total tax liability

*Tax payable/refund (Cross the one that is not appropriate)

3- Adrian's taxable income (from wages and investments) is $100,000 in 2017/18. He retired from employment in December 2017 and received a gratuit (an employment termination payment) of $50,000. The payment is not an excluded payment so that the lesser of the ETP cap and whole-of income cap applies for the purposes of determining the ETP tax offset. How much of Adrian's ETP is eligible for the ETP tax offset? Show reasons.