8. During the year ended 30 June 2020, Marias restaurant kitchen caught fire. As a result of the fire she received the following amounts: Insurance recovery to replace lost cool room $12,000 Insurance recovery for loss of food stock $9,000 Insurance recovery for cost of repairs to damaged equipment $7,000 Insurance recovery for cost of replacing equipment that couldnt be repaired $18,000 Income protection insurance payment received while the kitchen was closed for repairs $8,000 Reimbursement from Marias health fund for cost of medical treatment as a result of a burnt hand $2,000 How much should Maria include in her ordinary assessable income for the year ended 30 June 2020?

a. $30,000

b. $36,000

c. $26,000

d. $24,000

e. $42,000

9. Tessa derived a capital gain of $8,000 on the disposal of an active asset of her business on 20 March 2016. She elected in her 2016 tax return to use the replacement asset roll-over relief under Div 152 ITAA97. Tessa purchased an active replacement asset at a cost of $40,000 on 4 July 2017. On 12 May 2020 she sold the replacement asset for $12,000 and will not acquire any further replacement assets. Which CGT event will apply in relation to the original capital gain of $8,000 when the replacement asset is sold and what is the capital gain or loss arising from that CGT event?

a. CGT event J3 and a $8,000 gain

b. CGT event A1 and a $4,000 loss.

c. CGT event J2 and a nil gain or loss.

d. CGT event A1 and a $4,000 gain.

e. CGT event J2 and a $8,000 gain.

10. Scott is a livestock auctioneer employed by Auctions R Us Pty Ltd and is required to do a lot of travelling for work. He was therefore provided with a car by his employer during the FBT year ended 31 March 2020. The car was purchased by the company on 1 October 2019 for $46,700 (GST inclusive) and was made available to Scott to keep on his premises when not in use. As part of the arrangement, Scott was required to contribute to 30% of the fuel costs as he sometimes travelled out of town to visit family. His total contribution amounted to $1,800 for the year. Using the statutory formula method, what would be the FBT payable by Auctions R Us Pty Ltd for the year ended 31 March 2020 (to the nearest dollar)?

a. $2,120

b. $2,280

c. $2,241

d. $2,210

e. $2,806