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. (i) John incurred legal expenses as

John owns a convenience shop called City Conv. The following events occurred for John during 2019- 2020 financial year. (i) John incurred legal expenses as he was sued for false advertising. (ii) John purchased new fridge to the shop - $800. In addition, his builder added more space to the shop front. This cost him $22,000. (iii) John ordered 1000 new T-shirts with printed City Conv's logos for marketing purposes. These costs him $1,500. (iv) 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.

Required: With reference to relevant legislation and case law advise John on the assessability and/or deductibility of above events. (10 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

College Accounting Chapters 1-15

Authors: James A Heintz, Robert W Parry

19th Edition

0324376162, 978-0324376166

More Books

Students also viewed these Accounting questions