4. Company-reconciliation of taxable income Limbo Dancers Pty Ltd conducts business as financial consultants and also operates station. The income statement that the company has prepared for 2015/16 is as fo a parking lows: NCOME Gross Fee-consulting Gross Income-parking station Gain on Sale of Building-note 1 $1,527,000 $583,600 847,000 $2,957,600 EXPENSES Depreciation - note 2 Impairment of Goodwill Increase in Leave Provisions-note 3 Wages-note 4 Tax-related Expenditure-note 5 Loss on Sale of Shares- note 6 Other Deductible Expenditure NET PROFIT $350,000 $100,000 $17,000 $472,000 $165,000 $80,000 $473,000 $%1,657,000 1,300,60 Note 1 A building held as an investment was sold on 28 May 2016 for $2,947,000. It was originally purchased in 2009 for $2,100,000 and will need to be demolished by its new owners. Note 2 Decline in value allowed at tax rates amounted to $390,000. A further $137,000 is deductible for capital works Note 3 Actual leave payments amounted to $24,000. Note 4 Included are wages of $180,000 paid to the marketing manager. She is not related to any of the directors, but the current market rate for her position is a salary of $115,000. Note 5 Tax-related Expenditure comprises: Tax agent fee Land tax Penalties-late lodgements $13,000 116,000 $36,000 4. Company-reconciliation of taxable income Limbo Dancers Pty Ltd conducts business as financial consultants and also operates station. The income statement that the company has prepared for 2015/16 is as fo a parking lows: NCOME Gross Fee-consulting Gross Income-parking station Gain on Sale of Building-note 1 $1,527,000 $583,600 847,000 $2,957,600 EXPENSES Depreciation - note 2 Impairment of Goodwill Increase in Leave Provisions-note 3 Wages-note 4 Tax-related Expenditure-note 5 Loss on Sale of Shares- note 6 Other Deductible Expenditure NET PROFIT $350,000 $100,000 $17,000 $472,000 $165,000 $80,000 $473,000 $%1,657,000 1,300,60 Note 1 A building held as an investment was sold on 28 May 2016 for $2,947,000. It was originally purchased in 2009 for $2,100,000 and will need to be demolished by its new owners. Note 2 Decline in value allowed at tax rates amounted to $390,000. A further $137,000 is deductible for capital works Note 3 Actual leave payments amounted to $24,000. Note 4 Included are wages of $180,000 paid to the marketing manager. She is not related to any of the directors, but the current market rate for her position is a salary of $115,000. Note 5 Tax-related Expenditure comprises: Tax agent fee Land tax Penalties-late lodgements $13,000 116,000 $36,000