Q1 There are 4 parts to Question 1, worth 8 marks each. Total = 32 marks 32 Points Jardin Furniture Pty Ltd (Jardin) is a family-owned business which manufactures outdoor wood furniture from a leased factory building located in Adelaide, South Australia. It sells its products mainly to retailers across Australia. The private company was established by the Martin family in 1970 and is an Australian resident for taxation purposes. It is not a base rate entity for Australian income tax purposes. During the 2020/2021 income year, Jardin was involved in the events set out below. Your task Advise ALL THE PARTIES involved on the potential tax implications arising from the events for the income year ended 30 June 2021. If you need more facts, be sure to indicate those which are needed and why. Q1.1 8 Points On 1 April 2020, Jardin provided its chief financial officer, David Dent with a $100,000 loan for which it charged David an annual interest rate of 1.8%. David's family loves fishing, and 10% of the loan was used to purchase a boat for these purposes. The remaining 90% was used to invest in Bitcoin cryptocurrency. Q1.2 8 Points Jardin spent $3,300 (which included $300 GST) in January 2021 reconditioning an old wood working machine which it uses to shape wood. On 31 March 2021, Jardin disposed of the wood working machine to Top Seconds Pty. Ltd. (TS), a second-hand goods dealer for $88,000 (which included $8,000 GST). Jardin had acquired the wood working machine on 1 July 2013 for $132,000 (which included $12,000 GST) and had been claiming decline in value of the machine under Div.40 ITAA 1997, using the diminishing value method over the years. The tax adjusted value of the machine at the time of disposal was $60,000. Enter your answer here Q1.3 8 Points During the income year ended 30 June 2021, Jardin paid director fees to the following board members of the company who are all residents of Australia: (a) $120,000 to Bill Bloom, a non-executive director and not a shareholder. (b) $200,000 to Paul Martin, executive director, and shareholder. (c) $100,000 to Emily Martin a non-executive director and 23-ye -old daughter of Paul Martin and not a shareholder. Enter your answer here Q1.4 8 Points 1.4. In July 2020, Jardin gave up the lease of the factory it had occupied for the past 20 years and took up 10-year lease of another factory in a newly developed industrial area outside Adelaide. Jardin was inspired to move premises by the benefits it was offered by EFG Pty. Ltd. ('EFG'), the owner of the new factory. The benefits Jardin received were a lump sum sign on cash bonus of $100,000, and four free tickets to the Australian Golf championships held in Queensland's Gold Coast in January 2021, with free air fares and hotel accommodation valued at $30,000. EFG provided the benefits due to a downturn in the commercial property rental market at the time and many landlords were eager to secure good tenants. Enter your answer here Q1 There are 4 parts to Question 1, worth 8 marks each. Total = 32 marks 32 Points Jardin Furniture Pty Ltd (Jardin) is a family-owned business which manufactures outdoor wood furniture from a leased factory building located in Adelaide, South Australia. It sells its products mainly to retailers across Australia. The private company was established by the Martin family in 1970 and is an Australian resident for taxation purposes. It is not a base rate entity for Australian income tax purposes. During the 2020/2021 income year, Jardin was involved in the events set out below. Your task Advise ALL THE PARTIES involved on the potential tax implications arising from the events for the income year ended 30 June 2021. If you need more facts, be sure to indicate those which are needed and why. Q1.1 8 Points On 1 April 2020, Jardin provided its chief financial officer, David Dent with a $100,000 loan for which it charged David an annual interest rate of 1.8%. David's family loves fishing, and 10% of the loan was used to purchase a boat for these purposes. The remaining 90% was used to invest in Bitcoin cryptocurrency. Q1.2 8 Points Jardin spent $3,300 (which included $300 GST) in January 2021 reconditioning an old wood working machine which it uses to shape wood. On 31 March 2021, Jardin disposed of the wood working machine to Top Seconds Pty. Ltd. (TS), a second-hand goods dealer for $88,000 (which included $8,000 GST). Jardin had acquired the wood working machine on 1 July 2013 for $132,000 (which included $12,000 GST) and had been claiming decline in value of the machine under Div.40 ITAA 1997, using the diminishing value method over the years. The tax adjusted value of the machine at the time of disposal was $60,000. Enter your answer here Q1.3 8 Points During the income year ended 30 June 2021, Jardin paid director fees to the following board members of the company who are all residents of Australia: (a) $120,000 to Bill Bloom, a non-executive director and not a shareholder. (b) $200,000 to Paul Martin, executive director, and shareholder. (c) $100,000 to Emily Martin a non-executive director and 23-ye -old daughter of Paul Martin and not a shareholder. Enter your answer here Q1.4 8 Points 1.4. In July 2020, Jardin gave up the lease of the factory it had occupied for the past 20 years and took up 10-year lease of another factory in a newly developed industrial area outside Adelaide. Jardin was inspired to move premises by the benefits it was offered by EFG Pty. Ltd. ('EFG'), the owner of the new factory. The benefits Jardin received were a lump sum sign on cash bonus of $100,000, and four free tickets to the Australian Golf championships held in Queensland's Gold Coast in January 2021, with free air fares and hotel accommodation valued at $30,000. EFG provided the benefits due to a downturn in the commercial property rental market at the time and many landlords were eager to secure good tenants. Enter your answer here