q1 1. In which business structure below is a share of the profit before tax not included as an element of assessable income in the tax return of the individual taxpayer. Exclude dividends from your thinking. Select one: Partnership Sole Trader Company?

q2 The tax-free threshold for resident individual taxpayers for the year ended 30 June 2021 is Select one: $10,000 $18,200 $37,000 $0

q3 What tests does a company need to pass to be considered an Australian resident for tax purposes? Select one: The place of incorporation test The place of central management and control test The controlling shareholders test All of the above Only 1 of the 3 tests mentioned here 4. What is the allowable deduction for depreciation in the financial year ended 30 June 2020 for a piece of equipment purchased for $40,000 on 1 October 2019 under the diminishing value method if the effective life established by the ATO is 4 years? Select one: $7,500 $10,000

What tests does a company need to pass to be considered an Australian resident for tax purposes? Select one: The place of incorporation test The place of central management and control test The controlling shareholders test All of the above Only 1 of the 3 tests mentioned here 4. What is the allowable deduction for depreciation in the financial year ended 30 June 2020 for a piece of equipment purchased for $40,000 on 1 October 2019 under the diminishing value method if the effective life established by the ATO is 4 years? Select one: $7,500 $10,000 $15,000 $20,000

14.Mitchs business had opening stock of $8,000. During the year, there was sales income of $95,000 and purchases of $30,000. Trading stock valued at $500 was destroyed due to fire damage. The closing balance of stock at the end of the current income year was $3,500 after taking into account the stock damage. What is Mitchs taxable income from trading for the current income year? $60 500 $65 000 $90 500 $95 000

15.Tony has a rental property in Darwin. He has one loan account that covers both his rental property and his general needs for borrowed funds. The amount of the debt that has emanated from Tonys general needs is quite small. Nonetheless, this amount has been growing each year.

Each year Tony can accurately work out the interest that has accrued to the account from his acquisition of the rental property and the on-going ownership of that property. Tony is scrupulous concerning those calculations. He does those calculations on a spreadsheet as he prefers to only have one loan account instead of two. When Tony receives rent this rent is deposited on the loan account to reduce its balance but when items concerning the property need to be paid for, those funds come out of the loan account as there is a cheque look attached. Which of the following statements is TRUE? Tony cannot claim any interest expense in his tax return concerning the rental property as he should have organized a separate loan account for his rental property. Tony can claim interest expense in his tax return concerning the rental property and the claim would be as per his spreadsheet. Tony can claim all the interest on the loan account as most of the interest cost is to do with the rental property.

16. Patsie has been living in WA for 9 months in the 2019/2020 financial year. She usually lives in Ireland. She is in Australia working at various offices doing book-keeping. She has a 12- month visa and at the end of the 12 month she intends to return to Ireland and study accounting using as a base the knowledge she has gained through working in Australia. Is she a resident under the 183-day test? Yes No

17.What is the decline in value (depreciation) for the 2019-2020 financial year for a piece of equipment purchased for $60,000 on 1 January 2020 under the prime cost method if the effective life is 3 years? Select one: $10,000 $20,000 $60,000 $0

18. For the year ended 30 June 2020, Aspirations Pty Ltd had profit before tax of $375,000. The following information is also available: Accounting depreciation $30,000 Amortization of Intangibles Accounting: $15,000 Tax depreciation $60,000 Penalties and fines $15,000 Goodwill written off $75,000

What is Aspirations taxable income for the year ended 30 June 2020? $405,000 $420,000 $450,000 $510,000

19.What is the allowable deduction for depreciation in the financial year ended 30 June 2020 for a piece of equipment purchased for $40,000 on 1 October 2019 under the diminishing value method if the effective life established by the ATO is 8 years? Select one: $3,750 $5,000 $7,500 $10,000

20.Mitch works for an IT company. He earned a gross salary of $60,000 and a cash bonus of $10,000 during the financial year ended 30 June 2020. His bank credited $150 in interest to his savings account during the same year and his share portfolio grew $5,000 via a 100% franked dividend that came to him under a dividend investment plan. How much should Mitch include as assessable income in his tax return? Select one: $70,150 $7,293 $77,293 $75,150

21.Brian is an expert in explosives and works for a mining company. He earned a gross salary of $180,000 and a cash bonus of $30,000 during the financial year ended 30 June 2020. His bank credited $450 in interest to his savings account during the same year. He received cash dividends of $15,000 that were 60% franked. How much should Brian include as assessable income in his tax return? Select one:

$19,307 $229,307 $225,450 $210,450

$15,000 $20,000