5.7 Noel is a solicitor (lawyer) who operates his own business in Toowoomba providing legal advice to businesses. He has four employees. He incurred the following expenses during the current year of income. - A set of law reports containing all decided cases relevant to commercial law purchased for $3,600 on 1 November 2018. The reports will be used in the firm for many years to come. -An annual payment of $250 for a weekly commercial law newsletter paid on 4 February 2019. - Professional indemnity insurance premium (for one year) of $3,500 paid on 1 July 2018. Travelling costs of $400 paid to a prospective employee to attend an employment interview during the 2018/2019 financial year. The prospective employee flew from Sydney to Toowoomba and Noel reimbursed the costs of the travel. - Morning teas provided to employees during the 2018/2019 year cost $1,700. What is the total amount that is deductible under s 8-1 of the ITAA97 for the above expenditure during the 2018/2019 financial year? A $9.450 B. $4,150 c. $5,850 D. $3,750 Click or tap here to enter text. 5.8 Which of the following expenses would NOT be deductible under the second positive limb of s 8- 1 of the ITAA97? A. Legal expenses incurred by a company carrying on a retail business. B. An employee claiming a work-related expense. c. Salary and wages paid to employees by a primary producer carrying on a business. D. Public liability insurance incurred by an individual carrying on a consulting business. Click or tan here to enter text