BFA714-Australian Taxation Law Assignment No.1 Your client, Tom Lee runs small clothes shop in the suburb of Kingston, Hobart. He operates as a sole trader. The business is known as Tom's fashions' and Tom Lee has an ABN and is also registered for GST. The following figures are exclusive of GST Receipts 298,000 Sales of clothes 17,000 Rental income from an income producing investment apartment 1,000 Interest on Bank deposits. 8,000 Australian public company Fully franked dividend from a large 2,000 2,000 6,000 Exempt income from part-time military service Private Health fund refunds Fifty-percent franked dividend received froma large Australian public company Payments 15,000 property 25,000 2,000 Body Corporate fees on income producing Part-time employee salary Superannuation contribution for employee 5,000 3,000 1,100 Interest on money borrowed to purchase the Insurance and land tax for the investment Fees paid to a registered Tax Agent income producing investment apartment property 30,000 New item of plant with an estimated life of 10 years 1,000 2,000 5,000 3,000 6,000 Travel to and from work Rates on his principal residence Doctors fees for Tom Lee Doctors fees for Tom's wife, Mary Superannuation contribution for Tom Lee (a) Tom Lee is using the Small Business Entity (SBE) concessions Payments 15,000 property 25,000 2,000 Body Corporate fees on income producing Part-time employee salary Superannuation contribution for employee Interest on money borrowed to purchase the 5,000 3,000 1,100 income producing investment apartment Insurance and land tax for the investment property Fees paid to a registered Tax Agent New item of plant with an estimated life of 10 30,000 years 1,000 2,000 5,000 3,000 6,000 Travel to and from work Rates on his principal residence Doctors fees for Tom Lee Doctors fees for Tom's wife, Mary Superannuation contribution for Tom Lee (a) Tom Lee is using the Small Business Entity (SBE) (b) Stock at beginning of the year was valued at S35,000 Stock at end was: Cost $16,000 19,000 Market selling value Replacement $18,000 (c) On 1 July 2018 the opening depreciation pool balance for the SBE pool was $40,000. During the year Tom Lee purchased i new depreciating assets used 100% for business purposes. This is recorded in the payment's information listed above. The investment apartment was purchased new on I July 2018 and is part of a hotel complex. The real estate agent advised Bill Jones that the construction cost of the apartment was $287,000 and this was confirmed by the builder. (d) Tom Lee has a carry forward tax loss from an earlier income year of S10,000. (e Tom Lee and his family are members of a private health fund and do have private hospital insurance REQUIRED Calculate Tom Lee's personal tax liability for the year ended 30 June 2019. You should explain your treatment of each item in this question. Figures can be rounded to the nearest dollar BFA714-Australian Taxation Law Assignment No.1 Your client, Tom Lee runs small clothes shop in the suburb of Kingston, Hobart. He operates as a sole trader. The business is known as Tom's fashions' and Tom Lee has an ABN and is also registered for GST. The following figures are exclusive of GST Receipts 298,000 Sales of clothes 17,000 Rental income from an income producing investment apartment 1,000 Interest on Bank deposits. 8,000 Australian public company Fully franked dividend from a large 2,000 2,000 6,000 Exempt income from part-time military service Private Health fund refunds Fifty-percent franked dividend received froma large Australian public company Payments 15,000 property 25,000 2,000 Body Corporate fees on income producing Part-time employee salary Superannuation contribution for employee 5,000 3,000 1,100 Interest on money borrowed to purchase the Insurance and land tax for the investment Fees paid to a registered Tax Agent income producing investment apartment property 30,000 New item of plant with an estimated life of 10 years 1,000 2,000 5,000 3,000 6,000 Travel to and from work Rates on his principal residence Doctors fees for Tom Lee Doctors fees for Tom's wife, Mary Superannuation contribution for Tom Lee (a) Tom Lee is using the Small Business Entity (SBE) concessions Payments 15,000 property 25,000 2,000 Body Corporate fees on income producing Part-time employee salary Superannuation contribution for employee Interest on money borrowed to purchase the 5,000 3,000 1,100 income producing investment apartment Insurance and land tax for the investment property Fees paid to a registered Tax Agent New item of plant with an estimated life of 10 30,000 years 1,000 2,000 5,000 3,000 6,000 Travel to and from work Rates on his principal residence Doctors fees for Tom Lee Doctors fees for Tom's wife, Mary Superannuation contribution for Tom Lee (a) Tom Lee is using the Small Business Entity (SBE) (b) Stock at beginning of the year was valued at S35,000 Stock at end was: Cost $16,000 19,000 Market selling value Replacement $18,000 (c) On 1 July 2018 the opening depreciation pool balance for the SBE pool was $40,000. During the year Tom Lee purchased i new depreciating assets used 100% for business purposes. This is recorded in the payment's information listed above. The investment apartment was purchased new on I July 2018 and is part of a hotel complex. The real estate agent advised Bill Jones that the construction cost of the apartment was $287,000 and this was confirmed by the builder. (d) Tom Lee has a carry forward tax loss from an earlier income year of S10,000. (e Tom Lee and his family are members of a private health fund and do have private hospital insurance REQUIRED Calculate Tom Lee's personal tax liability for the year ended 30 June 2019. You should explain your treatment of each item in this question. Figures can be rounded to the nearest dollar