Question
Don MacDonald is a dairy farmer in Wagga Wagga and sells all his milk to the Reverina Dairy Co-operative. He provides the following information regarding
Don MacDonald is a dairy farmer in Wagga Wagga and sells all his milk to the Reverina Dairy Co-operative. He provides the following information regarding the 2020 tax year:
| Proceeds on sales of milk | $450,000 |
| Inheritance | $120,000 |
| Interest received ANZ Bank term deposits | 2,000 |
| Interest received ATO re: overpaid 2019 tax | 1,000 |
| Farm operating expenses (all deductible) | 172,000 |
| Royalty received from Wagga Hay being $50 per ton of hay they harvested on one of his paddocks | $17,850 |
| Purchase of new milking machinery | 19,000 |
| Rent of shed to Wagga Hay | 8,000 |
Calculate his ORDINARY income for 2020
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Comprehensive Assurance & Systems Tool
Authors: Laura R. Ingraham, Greg Jenkins
4th Edition
0134790472, 9780134790473
