10 a) Calculate William's taxable income for the 2021/22 tax year if he chooses not to apply any small business concessions. 41 Clearly show all workings for each component of your calculation. 12 13 Please use the cells in this background colour to write your workings/ explanations and answers. 14 Receipt Amount Write your Reasons Business Receipt Items $ or Workings (if applicable) 45 16 Assessable Income Gross wages 420,000 18 Stock - 30 June 2022 Increase in Trading 7,500 19 Stock - 30 June 2021 Stock 4,500 Balancing adjustment- motor vehicle Balancing adjustment - deep fryer Proceeds from loan 25,000.00 Stock taken for own use 4,600 54 Total Business Income 55 Expense Amount Write your Reasons Business Deduction Items $ or Workings (if applicable) 56 Less: Deductions (May not be required) 58 Purchase of Trading Stock 102,000 59 Stock - 30 June 2022 Decrease in Trading 7,500 Stock - 30 June 2021 Stock 4,500 Employee wages 70,000 Office rent 120,000 53 Balancing adjustment- motor vehicle 64 Balancing adjustment - deep fryer 65 Other deductions expenses 22,000 Instructions A Q1 Q2 Q3 Q4 A Q5 Q6a) Calculate William's taxable income for the 2021/22 tax year if he chooses not to apply any small business concessions. Clearly show all workings for each component of your calculation. Please use the cells in this background colour to write your workings/explanations and answers. Business Receipt Items Receipt Amount Write your Reasons $ or Workings (if applicable) Assessable Income Gross wages 420,000 Stock - 30 June 2022 Increase in Trading 7,500 Stock - 30 June 2021 stock 4,500 Balancing adjustment- motor vehicle Balancing adjustment - deep fryer Proceeds from loan 25,000.00 Stock taken for own use 4,600 Total Business Income Business Deduction Items Expense Amount Write your Reasons S or Workings (if applicable) Less: Deductions (May not be required) Purchase of Trading Stock 102,00 Stock - 30 June 2022 Decrease in Trading 7,500 Stock - 30 June 2021 Stock 4,500 Employee wages 70,000 Office rent 120,000 Balancing adjustment- motor vehicle Balancing adjustment - deep fryer Other deductions expenses 22,000 Decline in Value * (show your workings below) Workings as below Total Business Deductions TAXABLE INCOME Decline in Value * Workings Deep fryer- Purchased 1/08/2021, 10 year effective life 7500/10*10/12=625/ adjust value- year 1 Coffee machine- Purchased 1/04/2022, 5 year effective life Decline in value for all other assets held TOTALb) Calculate William's taxable income for the 2021/22 tax year if he chooses to apply the small business concessions. Include a list of the small business concessions applied. Clearly show all workings for each component of your calculation. Please use the cells in this background colour to write your workings/explanations and answers. Receipt Amount Business Receipt Items Assessable Income Gross wages Stock -30June2022 [ Increase in Trading l Stock 30 June 2021 4 s ] Balancing adjustment- motor vehicle Balancing adjustment - deep fryer Proceeds from loan Stock taken for own use Total Business Income Expense Amount $ Business Deduction Items Less: Deductions (May not be required) Purchase of TradingStock Stock 302022 - Stock-30June2021 | stk Employee wages Office rent Balancing adjustment- motor vehicle Balancing adjustment - deep fryer Other deductions expenses 22,000 Decline in Value * (show your workings below) Workings as below Total Business Deductions TAXABLE INCOME Workings Decline in value for all other assets held Write your Reasons or Workings (if applicable) Write your Reasons or Workings (if applicable) Question 3 William Turner (a single resident taxpayer aged 45) owns a restaurant called "Pirates". He has not previously elected to be treated under the SBE provisions; however, he would like to minimize his tax obligation. William has provided you with the following information regarding the 2021/22 financial year. The figures provided exclude GST. Receipts Sales Sale of motor vehicle on 1 July 2021 Sale of deep fryer on 31 July 2021 Proceeds from loan Payments Payments to creditors (trading stock) Employee wages Purchase of deep fryer (1/8/2021) Purchase of coffee machine (1/4/2022) Rent Other deductible expenses Other Balances Trading Stock Creditors Rent prepayment Additional information: 420,000 15,000 1,000 25,000 $ 102,000 70,000 *effective life 9,000 10 years 6.000 *effective life 5 ! years 120,000 22,000 30 June 2021 30 June 2022 $4,500 $7,500 $2,900 $11,600 $0 $15,000 e The motor vehicle had an adjustable value of $12,500 as at the date of disposal. The original cost was $40,000. The car was used 100% for business. The old deep fryer had an adjustable value of $1,400 as at the date of disposal. The original cost was $7,500. Decline in value for all other assets held amounted to $8,000 (not including any balancing adjustments on disposals). The adjustable value of these assets as at 1/7/2021 was $38,000. Stock taken home by William amounted to $4,600. REQUIRED: a) b) c) Using the Excel template provided, calculate William's taxable income for the 2021/22 tax year if he chooses not to apply any of the small business concessions. Using the Excel template provided, calculate William's taxable income for the 2021/22 tax year if he chooses to apply the small business concessions. Include a list of the small business concessions applied. Complete the Individual Tax Return 2022. Attach a copy of the tax return to an email to William requesting he sign and return the form for lodgement with the ATO, explaining the impact of the SBE concessions used