Chapter: Offsets and Tax equation

How can we solve the following MCQ?

QUESTION 1 1 points Save Answer Moncrieff is 14 years old and is an Australian tax resident. In the CIY, he has eligible taxable income of $1,307 and no other income. What is the tax payable (excluding Medicare levy) on his taxable income? $588.06 $143.06 $862.62 O $0QUESTION 2 1 points Save Answer 2013/14: Shannon is a resident for the full year and has given you the following information for the preparation of her income tax return for Wage income $27,000 Investment income $1,700 Deductions $175 PAYG (W) per payment summary $3,576 PAYG (I )on investment income $43 per quarter Calculate Shannon's tax credits for the CIY $3576 $3748 $3619 O $43QUESTION 3 1 points Save Answer The income tax rates applicable to a taxpayer in Australia depend upon: O Whether you use the cash or accruals method to recognise income O Which state you live in O Whether you are a minor or not O Whether you are an employee or a contractor QUESTION 4 1 points Save Answer Wanda June was resident for the full year and received a $7,000 cash dividend which was franked to 100%. Wanda June does not derive any other income during the year. Which of the following is correct about Wanda June? O Wanda June's taxable income is $7,000 Wanda June is entitled to a refund of $3000 in the CIY. Wanda June's taxable income is $4,000 O The dividend is not assessable income to Wanda June because the company has already paid income tax on the underlying profitQUESTION 5 1 points Save Answer Chris is an Australian resident for the year ended 30 June 2014. During the last financial year, Chris made the decision to cease working for wages and purchase his own gardening business. (Assume Chris is not a small business entity.) Based on the following, calculate Chris's taxable income: . gross wage $41,000, PAYG withheld $10,000 cash dividends of $2,000, with imputation credits of $860 attached interest received $250 rent received $12,500 rental expenses $9,490 assessable income from gardening business $18,100 . allowable deductions from gardening business $9,200 union fees paid while working $750 $55,270 $59,770 $54,410 $55,020