Case Study: Comprehensive Individual Tax Return Jeremy Wild, a resident single taxpayer aged 49. Jeremy runs a mixed business and has not elected to apply any of the small business entity concessions. Jeremy uses an accrual method. Jeremy's records disclosed the following for the 2019/20 tax year. All amounts are GST exclusive. Receipts Cash receipts from customers (sales) Fully franked dividend Received Proceeds from loan for shop repairs Proceeds from sale of Motor vehicle - see note 1 COVID19 Cash Boost payment from the ATO COVID19 Job keeper payment from the ATO $ 279,000 2,000 25,000 14,000 15,000 14,300 Payments Purchases of trading stock PAYG Tax Instalments paid by Jeremy Borrowing Costs (incurred on 1 May 2020 on an 8-year loan) Drawings Repairs - see note 2 Loan Repayments (interest only) Net Wages to employee PAYG tax withheld from employee's wages Superannuation for employees - see note 3 Annual/Personal leave paid - see note 4 Personal Super contributions Private health insurance Drivers licence renewal Late lodgement fee relating to Business Activity Statement Other Deductible Expenses 159,300 6,200 1,800 19,000 29,200 2,000 17,500 4,500 9,800 4,000 6,000 1,800 185 500 29,300 Note 1 The motor vehicle had an adjustable value of $13,000 as at the date of disposal. The original cost was $54,000 in June 2017. The car was used 80% for business. Note 2 During the year, Jeremy spent the following amounts on repairs: Landscaping at Front of Shop (30 October 2019) Repaint Shop (1 March 2020) Installation of Concrete Ramp (completed on 31 January 2020) $3,200 10,000 16,000 Note 3 Additional annual/personal leave accrued (provided, not paid) on 30 June 2020 was $4,500 Note 4 Employees' superannuation of $1,400 was accrued as at 30 June 2020 (not yet paid) Other Information Stock as at 30/6/19 - at cost Stock as at 30/6/19 - at market selling value 8,100 7,000 Stock as at 30/6/20-at cost Stock as at 30/6/20 - at market selling value 9,400 12,200 Debtors (Sales) at 30/6/19 Debtors (Sales) as at 30/6/20 4,500 3,900 Creditors (Purchases) as at 30/6/19 Creditors (Purchases) as at 30/6/20 7,800 9,200 Stock taken by Jeremy - at cost Stock taken by Jeremy-at market selling value 3,400 5,100 In the 2018/19 tax year Jeremy used market selling value as the basis for valuing his trading stock. Assets held by Jeremy as at 30 June 2020 included: Asset Cost ($) Year Adj. Value at Acquired 30/6/19 ($) Shop Fittings 80,400 2016/17 30,200 Computer 4,100 2016/17 2,200 Equipment 21,000 28/2/2020 n/a Effective Life 10 years 4 years 7 years Depreciation Method Diminishing Value Prime Cost ? Jeremy has an adequate private hospital insurance. Required The following Part A and Part B must be submitted as a single file in MS Word format. Part A) Calculate Jeremy's taxakhudble income for 2019/20 and net tax payable or refundable. Use the template provied below (add more lines if needed). Show all workings of each income & deductions of calculations and any tax offsets available for Jeremy. Part B) Explain inclusion/exclusion of each income and deductions with reference to relevant available cases and section numbers as per ITAA36/ITAA97.