14. Paul and Mary carry on a small retail business in partnership. They share profits 65/35 after first deducting salaries of $100,000 for Paul and $60,000 for Mary. At the end of the year the Partnership had the following P&L. 800 000 Sales 450 000 Cost of Sales 350 000 Gross Profit 260 000 All other expenses including partners salaries

During the year, Paul and Mary withdrew $50 000 each in cash. Which statement is correct? (a) The PNI is $90 000. Pauls share is $58 500. Marys share is $31 500 (b) The PNI is -$10 000. Pauls share is -$6 500. Marys share is -$3 500 (c) The PNI is $250 000. Pauls share is $158 500. Marys share is $91 500

13.Ginger and Fred carry on a small wholesaling business in partnership. They share profits 55/45 on a simple formula. At the end of the year the Partnership had the following P&L. 600 000 Sales 400 000 Cost of Sales 200 000 Gross Profit 80 000 Other Expenses During the year, Max and Jane withdrew $50 000 each in cash. Which statement is correct? (a) The PNI is $120 000. Gingers share is $66 000. Freds share is $54 000 (b) The PNI is $20 000. Gingers share is $11 000. Freds share is $9 000 (c) The PNI is $120 000. Gingers share is $61 000. Freds share is $59 000

26.A resident company of Australia has an opening debit balance of $6,000 in its franking account as at 1 July 2019. It has the following transactions in the year: On 29 July 2019, it paid a PAYG instalment of $50,000 On 30 September 2019, it paid a $20,000 cash dividend franked to 75% On 15 November 2019, it received a fully franked $30,000 cash dividend On 15 May 2020, it paid $10,000 in Fringe Benefits Tax What is the closing balance in its franking account as at 30 June 2020?

$36 429 $40 429 $50 429 $60 429

27.What is the decline in value (depreciation) for the 2019-2020 financial year for a piece of equipment purchased for $60,000 on 1 January 2020 under the prime cost method if the effective life is 3 years? Select one:

$0 $10,000 $20,000 $60,000

16. Paul is an expert in mechanical engineering advice and works as a PAYG employee. He earned a gross salary of $180,000 and a cash bonus of $30,000 during the financial year ended 30 June 2020. His bank credited $450 in interest to his savings account during the same year and his share portfolio generated $15,000 in a 100% franked dividend that he elected to not accept cash for. He instead took an equivalent value in shares under the dividend investment plan that was open to all shareholders. How much should Paul include as ordinary income in his tax return? Select one: $231,879 $225,450 $210,450 $15,450

31. Mr Smart Sausage recently bought himself an investment property which included a dwelling that could be rented out for people to live in. His planned holding period is 10 years. Mr Sausage had the following transactions for the 2019-2020 tax year just ended: The property was acquired on 1 July 2019 for $900 000, plus stamp duty of $35,000 and legal fees of $5,000. Rental income was $2,400 per month. The rental agreement stipulated a payment on 1 July 2019 and then a payment on 31 July 2019 followed by a payment at the end of every month after that. The tenant duly made the end of month payments on the due dates or earlier. Municipal rates, including garbage collection, were $2000. Water and sewerage rates were $1000. Mr Sausage has a 3-year loan over the property. The bank charged $24 000 interest during the year and at the beginning of the year charged a one-off fee of $3 000 to establish a loan and complete a bank valuation. Several holes in the carpet needed repairing during the year. The cost was $1200 There was an additional $1400 legal fee as a result of some work that needed to be done by Mr Sausages lawyer to do with an issue with the owners of an adjoining property concerning exactly where a future fence can be placed, effectively a boundary dispute. The taxable income from the investment property for the 2019-2020 tax year is: $600 $2000 $3000 $3200 $26000

32. For the year ended 30 June 2020, Aspirations Pty Ltd had profit before tax of $375,000. The following information is also available: Accounting depreciation $30,000 Amortization of Intangibles (Accounting) $15,000 Tax depreciation $60,000 Penalties and fines $15,000 (accounting) Goodwill written off $75,000 (accounting) What is Aspirations taxable income for the year ended 30 June 2020? $405,000 $420,000 $450,000 $510,000

42. Roger is a tax resident of Australia for the full year. He received the following dividends: A cash dividend of $1,400 from Telstra. This was 100% franked A dividend of $2,000 from BHP which was 50% franked and reinvested though a dividend reinvestment plan An unfranked dividend of $400 from Woolworths. In relation to these transactions, how much will Roger include in his assessable income?

A. $4,428 B. $5,256 C. $4,828 D. $3,800

43. Robert owns an investment property which is currently rented to tenants. He purchases a washing machine for the rental property which costs $1,100 plus $100 delivery and installation. He makes all payments on day one of the tax year. Robert is not registered for GST. Which of the following statements is correct?

A. Robert can claim a tax deduction of $1,100 in the year of the purchase

B. Assume the Prime Cost method of depreciation is elected, Robert will depreciate the washing machine over its effective life with the initial depreciable amount set at $1,100 C. Robert can claim a tax deduction of $1,200 in the year of the purchase

D. Assume the Prime Cost method of depreciation is elected, Robert will depreciate the washing machine over its effective life, with the initial depreciable amount set at $1,200 Taxable Income