1. Sandra paid $440 in fees to an accounting firm to prepare her previous years tax return. She also paid the firm $1,100 to seek a private rulings about whether shares that she had recently sold are subject to CGT. Advise Sandra whether she is entitled two deductions for her expenditure.

Discuss the nature of repair

1. Bill is a self-employed electrician who primarily undertakes electrical repair work for the public and at 30 June 2014 he had the following items on hand:

• Light fittings that cost $12,000 during the year he will separately charge for the light fittings when completing a job.
• Electrical cable that cost $3,000 he will use the cabling to complete his work but will not separately charge an amount for the cable used in completing a job.
• Nails and screws that cost $700 he will use these in completing his work but will not separately charge an amount for the nails and screws used in completing a job.
• Tools purchased during the year that cost $4,000 he will use these to complete his work but does not hold them for resale.

Assuming that Bill wishes to value his trading stock at cost price on 30 June 2014, what value of closing stock should he choose?

4. Noel carries on a business of forest operations and purchased land and trees for $60,000 ($20,000 of the cost was attributable to the timber). During the current year Noel fells all the timber and incurs $10,000 in felling and transportation costs. Noel had no sales during the current year. Assuming that Noel wishes to value his stock on hand using the cost method, what is the value of closing stock on hand at 30 June 2014?

1. During the income year, Rib made the following capital gains:

1. Capital gain of $15,000 on the sale of his shares in M Co (this is not a discount capital gain)
2. Capital gain of $15,000 on the sale of his shares in N Co (this is a discount capital gain. He is eligible for a 50% discount)

He also made a capital loss of $6,500 on the sale of his land and he has a net capital loss from last year of $4,500.

Required: Calculate Ribs net capital gain.

1. In 2008, Barney purchased a holiday home near the beach for use by his family on weekends for $700,000. Barney was required to pay $40,000 stamp duty in respect of the transfer. He borrowed money from a bank to fund some of the purchase price and paid $20,000 in interest on the loan. Last year, he also paid $33,000 to a builder to renovate the kitchen in the property.

Required: Whats the cost base of the property?

1. Company X acquired a CGT asset in March 1987 for $100,000. Company X sold the asset in January 2016 for 80,000.

Required: Whats the net capital gain/loss using indexation method?

1. Mary acquired a CGT asset in March 1987 for $100,000. She sold the asset in January 2016 for 200,000.

Required: Whats the net capital gain/loss using discount method?

2. John acquired a CGT asset in June 1987 for $500,000. He sold the asset in January 2016 for 300,000.

Required: Whats the net capital gain/loss using the indexation method and Discount method.