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Part A You are currently working as a graduate accountant and are provided with the following information from a client. The client, John, has the

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Part A You are currently working as a graduate accountant and are provided with the following information from a client. The client, John, has the following income and expenses for the financial year ended 30 June 2020. John is employed as a Manager for a local transport company. Income 1,000.00 25,000.00 145,000.00 3,000.00 10,000.00 2,000.00 1.000.00 A wedding gift from his employer Bonus received from his employer for successful completion of a large project Salary received from her employer (including PAYG Withholding of $22.000) Interest on Bank Deposits John wins $10,000 at the race track (horses) Exempt income from foreign services provided with respect to Army Reserves Received award from the Institute of Managers. To receive the award John simply had to attend the Institute of Managers final year end dinners. Expenses 800.00 400.00 200.00 730.00 John purchased work boots for $250. protective sunglasses for $250 and New dress shirt for $300 (which he also wears on the weekend) Cost of meals and entertainment that his employer reimbursed him for Taxi fares for travel to and from work when his car was being serviced Membership fees $530 relating to membership of institute of managers and $200 relating to membership fee for real estate institute Rates on family home Electricity for family home 3,200.00 900.00 John has two children and his spouse passed away two years ago. John does have private health insurance. In addition to the above John advises he does work from home as he attends to emails late night after dinner at least 4 nights a week, however he works from kitchen table as he does not have a separate office at home. Required: Determine which Income and Expenses are assessable income or allowable deductions. Note you will need to cite legislative references, case law and tax rulings as applicable. Emphasis is on providing substantiation for you reasoning to include as assessable income or allowable deduction Assume John is a resident for Australian taxation purposes, calculate his tax liability including any tax offsets and levies

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