During the 2020 income year, Beth, who works as a tattoo artist for INK Pty Ltd, recorded employment income of $50,000. She also incurred the following expenses:

(a) Hoping to be better skilled as a tattoo artist, she paid $4,000 to attend a short course on first aid and the prevention of infection in medical procedures; (0.5 marks)

(b) She made a $500 donation to the RSPCA (a registered charity); (0.5 marks)

(c) After an argument with her employer, she decided to open her own shop. Before opening her new shop in Sydney, she spent $35,000 on fitting out the new shop before she was able to start trading; (2 marks)

(d) She also bought a new tattooing machine on the 1 July 2019 which cost her $12,000 and has an effective life of 4 years. Beth is unsure which method to use for claiming the maximum amount of depreciation on the machine. Show both methods. (3 marks)

Discuss which of these expenses can be claimed as deductions and why. You must refer to relevant legislation and/ or case law.