Question
John owns a convenience shop called City Conv. The following events occurred for John during 2019-2020 financial year. 1- John incurred legal expenses as he
John owns a convenience shop called City Conv. The following events occurred for John during 2019-2020 financial year.
1- John incurred legal expenses as he was sued for false advertising.
2- John purchased new fridge to the shop - $800. In addition, his builder added more space to the shop front. This cost him $22,000.
3- John ordered 1000 new T-shirts with printed City Conv’s logos for marketing purposes. These costs him $1,500.
4- John received a City of Sydney fine for putting his sales item for display outside his shop without a permit. He required to apply for a permit to use the footpath. With reference to relevant legislation and case law advise John on the assess ability and/or deductibility of above events.
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
78025915, 978-1259115400, 1259115402, 978-0078025914
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