12.Robert Earnest has collected stamps for over 20 years. Although Robert has not acquired any since 19 September 1985, Robert has over 10,000 stamps. Recently, Robert had them valued and surprisingly, they were valued at $800,000. Robert decided to sell the collection and to facilitate this, Robert has engaged a sales and marketing agent to sell his collection. Robert has also spent $5,000 of his own money to pay for advertisement in magazines and online to promote the sale of his collection. Is Robert 'carrying on a business' for tax purposes? a. Yes, Robert is carrying on a business b. No, Robert is not carrying on a business. It is merely a hobby. 13.Beatrice opens a savings account with a local credit union. The account was opened during a promotion for new customers. The credit union offered a $1,000 prize to one of its new customers. To be eligible, customers had to deposit a minimum of $1,000 and leave it in the account for a minimum of 6 months. Beatrice was the prize winner. Is Beatrice's prize assessable as income? a. No, Beatrice's prize is not assessable as income b. Yes, Beatrice's prize is assessable as income 14.Legal expenses incurred by a company to provide general legal advice is an allowable deduction under s8-1 of ITAA97. a. True b. False 15. Travel expenses from the school to the sporting field, which a schoolteacher incurs. The schoolteacher coaches a local soccer team as a casual job. The travel expenses are not deductible under s8-1 of ITAA97. a. True b. False 5