Assignments' Instructions and Requirements (15 MARKS) QUESTION 1 Francis is an experienced businessman working in the hospitality industry for many years. He h recently purchased an old restaurant. The commercial kitchen in the restaurant was in po condition. Replacing the whole commercial kitchen will cost Francis $23,000. The cost of repair the kitchen appliances will be $4,900, however some parts may not be available in the mark anymore as these appliances are too old and obsolete. Francis decided to replace the commerc kitchen with brand new modern appliances because new modern appliances in the market ha better features and durability. Advise Francis on the deductibility of the above transactions. Your advice must be supported reference to relevant legislation and principles of tax law. QUESTION 2 (10 MARKS) Tom owns a business called Tom's Band in Westfield Sydney selling musical instruments. Tom al teaches guitar on a casual basis at the Sydney Guitar School a local musical college. The followi are Tom's receipts during the 2019-20 financial year: 220,000 53,000 Particulars Tom's Band sales include $2,500 from sales of musical instruments made last year. In addition, there is a sale of $3,200 made in April of the current year but not yet paid. Salary from the Sydney Guitar School. This includes Long Service Leave of $4,200 which Tom is going to take in July of the following year. Tom has withdrawal from bank. This was made up of the original capital deposited of $20,000 plus interest of $1,000 which was paid last year and re- invested. Interest of 5% was paid on the invested money. Fully franked dividends includes franking credits of $5,143 were attached. Unfranked dividend 22,050 12.000 4,000 Required: Assuming Tom does not have allowable deductions, you are required to calculate Tom's taxable income and net tax payable. Assignment Structure should be as the following (students' responses involves calculation and students must refer to the relevant legislation and cases whenever required according the questions). For question 1, address the following elements: Identification of material facts regarding Francis's deductibility of the commercial kitchen expenditures in the given scenario, and the critical discussion of tax consequences relevant to the assignment question. HA3042 Taxation Law Individual Assignment T1.2020 Assignments' Instructions and Requirements (15 MARKS) QUESTION 1 Francis is an experienced businessman working in the hospitality industry for many years. He h recently purchased an old restaurant. The commercial kitchen in the restaurant was in po condition. Replacing the whole commercial kitchen will cost Francis $23,000. The cost of repair the kitchen appliances will be $4,900, however some parts may not be available in the mark anymore as these appliances are too old and obsolete. Francis decided to replace the commerc kitchen with brand new modern appliances because new modern appliances in the market ha better features and durability. Advise Francis on the deductibility of the above transactions. Your advice must be supported reference to relevant legislation and principles of tax law. QUESTION 2 (10 MARKS) Tom owns a business called Tom's Band in Westfield Sydney selling musical instruments. Tom al teaches guitar on a casual basis at the Sydney Guitar School a local musical college. The followi are Tom's receipts during the 2019-20 financial year: 220,000 53,000 Particulars Tom's Band sales include $2,500 from sales of musical instruments made last year. In addition, there is a sale of $3,200 made in April of the current year but not yet paid. Salary from the Sydney Guitar School. This includes Long Service Leave of $4,200 which Tom is going to take in July of the following year. Tom has withdrawal from bank. This was made up of the original capital deposited of $20,000 plus interest of $1,000 which was paid last year and re- invested. Interest of 5% was paid on the invested money. Fully franked dividends includes franking credits of $5,143 were attached. Unfranked dividend 22,050 12.000 4,000 Required: Assuming Tom does not have allowable deductions, you are required to calculate Tom's taxable income and net tax payable. Assignment Structure should be as the following (students' responses involves calculation and students must refer to the relevant legislation and cases whenever required according the questions). For question 1, address the following elements: Identification of material facts regarding Francis's deductibility of the commercial kitchen expenditures in the given scenario, and the critical discussion of tax consequences relevant to the assignment question. HA3042 Taxation Law Individual Assignment T1.2020