Exercise 1: Vicky recently purchased a sushi bar business. Can he claim a deduction under s40-880 ITAA97 for the amount paid under the contract to acquire the goodwill of the business? Explain your answer.

Exercise 2: What is the aim of the consolidation cost setting rules? Identify the main consequences that flow if a group of entities consolidate.

Exercise 3: Explain how the pooling rules for low cost and low-value assets in Sub-div 40-E ITAA97 operate. What assets cannot be allocated to a pool under Sub-div 40-E? What is the reason for this?