1. Sophie and Anne carry on a partnership together with gross receipts for the current income year of $80,000. During the year, the following payments were made: Purchases of trading stock $18,000 Wages to employees $10,000 Advances to Anne $35,000 Lease payments on a car $4,000 It has been agreed that Sophie will receive 75% and Anne will receive 25% of the profits of the partnership. Stock on hand at the beginning of the year was $3,000 and at the end of the year it was $3,400. The car was used 100% for business purposes. What is Sophies assessable income? a. $24,200 b. $48,000 c. $36,300 d. $12,100

2.

Paula is a retailer operating a business. She received the following amounts during the current tax year ended 30 June:

- $37,000 from her insurance company to compensate her for the loss of trading stock in her store as a result of a flood.

- $50,000 from Margaret for the sale of a depreciating asset that Paula had used in her business. The adjustable value (WDV) of the depreciating assets was also $50,000 at the time of disposal.

- $24,000 as an incentive to enter into a lease of a new shop premises where Paula was motivated to sign the contract because of the money received.

What amount would Paula include in her assessable income (ignoring the capital gains tax provisions)?

a. $37,000 b. $111,000 c. $61,000 d. $74,000

3.

Jenny purchased a computer for $3000 on 1 January 2021. She uses the computer 50% for work purposes. She estimates that the computer will last for 3 years. Jenny uses the prime cost method to calculate all depreciation deductions. How much can Jenny claim as a deduction in the income year ended 30 June 2021 assuming she is not an SBE (rounded to the nearest dollar)?

a. $500 b. $1,500 c. $248 d. $3,000

4.

During the current income tax year a taxpayer, Adele Ho, made a capital gain of $100,000 from the sale of land and a capital loss of $10,000 from the sale of shares. She also has prior year carry forward capital losses from the sale of shares that total $30,000. Adele elects to use the capital gains tax (CGT) discount method to determine her net capital gain.

What is Adeles assessable net capital gain for the current income tax year?

a. $60,000 b. $30,000 c. $45,000 d. $15,000

5. Due to a natural disaster a taxpayer received a lump sum payment of $150,000 from their insurance company to compensate them for the entire loss of a building that was destroyed. As there was a lengthy delay in approving the claim, the taxpayer was entitled to an interest component of $18,000 for the period of time from 60 days after the claim was lodged to the time of payment. Which of the following amounts represents the assessable ordinary income amount as a result of this transaction? a. $18,000 b. $150,000 c. $168,000 d. $900