Adam runs his own marketing business. During the year he incurred the following expenses:

salary costs of $500,000.

salary costs of $9,000 for his son who did some graphic design work for him as he was studying graphic design at university. The work took approximately 19 hours to complete.

$1200 on membership to the local bowls club where he entertains clients.

$3,000 on smart clothing that he considered necessary to portray the correct image to his clients.

$8,500 on meal expenses for his important clients.

Interest cost of $8,400 on a loan he took out to start up the business.

$4,000 in travelling from home to work.

$8,500 in telephone bills, of which he estimates 80% to be used for calling clients.

$9,000 on airfare and accommodation to a marketing conference.

$600 charged by his accountant to complete his tax return for the year.

Advise Adam as to the deductibility of the above expenses. Ensure to make reference to relevant legislation. (each subsection is worth 2 marks)