17. Jane has been practising accounting for 5 years and working for KPMG, a top tier accounting firm. She's always been interested in interior design and decides to undertake studies to become an professional designer. Jane resigns from her role at KPMG to study. The duration of the studies lasts two years. Is the cost of of the interior design course an allowable deduction? a. Yes b. No 18. Sportswear Pty Ltd spends $5,000 to produce a new type of clothing, perfect for cyclists. It has never produced nor designed new clothing before as its business model is to purchase and re-sell clothing from manufacturers. Sportswear Pty Ltd claims a deduction of $5,000 for the new product development as an allowable deduction. Is Sportswear's treatment of the new product development costs a correct treatment of that cost from a tax perspective? a. Yes b. No 19. Advocate News Ltd publishes the Advocate Herald newspaper. In July 2021, it printed a defamatory statement about a sportsperson. It was sued and lost, having to pay damages of $20,000 to the sportsperson. Is the damages amount an allowable deduction? a. Yes b. No 20. Alice is required to wear only white-coloured stockings by her hospital employer. The hospital does not provide her with the stockings and, due to wear and tear, she finds she must buy a new pair every two to three weeks. Is the cost of Alice's stockings an allowable deduction? a. Yes b. No 6