Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

3.48 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

Answer The expenses which are incurred according to the laws and rules are allowed as deduction whil... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby

5th edition

78025915, 978-1259115400, 1259115402, 978-0078025914

More Books

Students also viewed these Accounting questions

Question

What are the application procedures?

Answered: 1 week ago