1. You are working as Tax Consultant. One of your clients Barbara, an Australian resident living in Gold Coast, runs a business of furniture manufacturing. The following are receipts of her during the financial year 2014-15.

Explain whether the following particular amount will be assessable income or Capital gain. Undertake required calculations to show total Assessable income for the year 2014-15.

i. Wood carving machine: On 5^th October 2013 Barbara purchased Wood carving machine for 100% of the times to be used in business until she sold for$2000. The adjustable/ written down value of the machine for tax purposes when sold was $1500.

ii. Block of Land: She bought land for $50,000 on 13^th April 2010 for investment purposes. She entered into a contract to sell the land on 20^th June 2015 for $70,000 incurring cost of real estate agent fees $500 and legal fees $200.

iii. Home: Barbara sold her home for $ 200,000 on 6^th December 2014. She bought it on 5^th January 1990 for $60,000. The selling cost incurred is $500. You are working as Tax Consultant. One of your clients Barbara, an Australian resident living in Gold Coast, runs a business of furniture manufacturing. The following are receipts of her during the financial year 2014-15.

2. Mr. Daniel runs business of selling computers in Sydney. He gifts 20 computers costing him $200 each so that his nephew Joseph can commence business as a retailer in New Castle. The market price of computer at the date of disposal is $400. What amount is assessable in Mr. Daniels hands and what value does Joseph bring in as a cost price for the computers?