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Hi tutor, Could you please help with this study case? I'm feeling stuck. please find attached file. Many thanks!! Case study one- June and Bill

Hi tutor,

Could you please help with this study case? I'm feeling stuck. please find attached file. Many thanks!!

image text in transcribed Case study one- June and Bill Quinton June (aged 50) has a husband Bill (aged 55) and a son Mel (aged 22). She has no other dependants. June and Bill are both Australian residents for the income year and only June has private health insurance. June's employment details June is a guest lecturer at local universities and volunteers at a local women's refuge providing free legal advice. Employment income Salary from university lectures: $22,500 Due to an oversight, June was not paid $1,000 for lectures she gave the previous year. The salary received this year includes the $1,000. PAYG (withholding) of $3,400 was deducted from the total salary, of which $300 related to the fees from the previous year. The refuge gave her four tickets to West Coast Eagles football games valued at 400. Work-related expenses Meals purchased at university cafeterias before evening classes and after work. $250. June purchased a portable printer on 10 November CIY which she used 50% for printing lecture notes and the remaining 50% for printing family photos and private emails. The effective life of the printer is three years. $280 June's business income June is the owner of a law firm, June's Law. June employs three senior lawyers, 10 junior lawyers, four receptionists and two research assistants in this business. Business income Fees received: $2,840,000 Invoices totalling $3,536,000 were issued. $80,000 from the previous year was received in the current year. Retainers received on 30 June CIY: $250,000 June has a number of clients who pay an annual retainer on 30 June each year in advance for the following year, and June always receives these amounts on the same date that they are paid. The retainer guarantees clients to access a lawyer within one hour of their call and expedites the handling of their issues by the firm. Clients must still pay June an additional amount for any services she provides. Compensation payment received on 30 July CIY: $400,000 The office was damaged by fire during the previous year and the insurer paid June $63,000 for loss of business profits. The balance was used to refurbish the office. Business expenses June borrowed $150,000 for working capital and to carry out some minor renovations to the office. The loan is for eight years, commencing on 1 June CIY. June paid the lender a total of $2,100 in application and valuation fees in order to secure the loan. The loan required the repayment of interest only. June prepaid one year's interest on 1 June CIY. $30,000 Repairs to a recently acquired office building which was purchased on 30 June PIY: $100,000 The repairs were carried out on 15 September CIY prior to the building being used in the business. Reimbursement of telephone expenses as part of the remuneration package of a senior lawyer who often worked from home and used her home telephone for work-related calls. The business paid the full amount of their telephone expenses even though business calls constituted about 40% of the bills (the remainder was private). $1,400 Investment income Fixed deposit redeemed on 30 June CIY: $54,600 Two years ago June deposited $50,000 in a fixed deposit. Interest accrued at the end of the first income year, but June rolled over the total amount of $52,500 on 30 June PIY until she required the money for other purposes. Dividends received from Baby-boomers Ltd on 18 December CIY: $36,000 Franking credits of $15,429 were attached to this dividend. Additional information June is registered for GST purposes, however you should ignore any GST issues in Part A. If relevant, June always prefers to use the prime cost method of depreciation. Question 1 Calculate the amounts which must be included in June's assessable income from her work as a guest lecturer and in the women's refuge for the CIY. Provide brief reasons for including or excluding any amounts. Question 2(a) Complete the following table for June's work-related expense in relation to her meals. Determine what deductions, if any, she is entitled to claim under s 8-1 of the ITAA97 for the CIY. WORK-RELATED EXPENSES - ANSWER YES OR NO AND PROVIDE AMOUNT OF DEDUCTION Question 2(b) Calculate the amount of any specific deduction (eg capital allowance) that June may be entitled to claim in respect of the printer. Provide a reason for your answer and show your workings. Question 3 Calculate the amounts which must be included in June's assessable income from her business for the CIY. Provide brief reasons for any amounts included or excluded

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