Merry is a chef. She runs her own restaurant business. During the year, Merry incurred the following expenses.

Advise Merry as to whether the expenses below would be deductible for income tax purposes.

-

A.

B.

C.

salary costs to casual employees of $50,000

-

A.

B.

C.

salary costs of $2,000 to her sister (the amount is excessive, compared to the same job performed by others)

-

A.

B.

C.

travel costs of $8,000 for travel from her home to her restaurant

-

A.

B.

C.

$12,000 on protective clothing like spectacles and gloves for herself and staff

-

A.

B.

C.

$3,000 on a course which educates her about a new cuisine that she can add to her restaurant menu