Q1 Which of the following is an allowable deduction of a partnership? (A)Interest paid to partners on capital balances B.Interest paid to a partner on an arms length loan C.Salaries paid to partners according to a partnership agreement D.None of the above E. Capital loss on disposal of a partnership asset Q2 In relation to the available trading stock concessions for small business entities, select the TRUE statement: A. Where trading stock is estimated to be less than $75,000 any difference between opening and closing stock is not brought to account B. A physical stock take is required for non-perishable trading stock only C. None of the above D. A physical stock take is not required by any eligible small business entities E. Where trading stock is estimated to be within $5,000 of opening stock, the difference does not need to be brought to account Q3 Xan runs a mechanic shop in Brisbane. During the 2020 income year, he incurred the following expenses: Repainting the interior of the business premises for $1,700. The old paintwork became stained and was peeling off. Repairs worth $600 performed on his delivery van which is used 60% for business purposes. Brand new neon sign worth $15,000 to replace the existing painted shop logo. Brand new security system installed after the shop was vandalized. What amount can Xan claim for repairs under section 25-10 of the Income Tax Assessment Act 1997? A. $2,600 B. $2,060 C. $7,360 D. $7,600 E. $2,360 Q4. Kylie is 16yo and in full time education. Right before the end of the financial year, Kylie receives unearned investment income of $25,000. Calculate her income tax payable. A. $11,250 B. $11,750 C. $10,805 D. None of the above E. $11,305 Q5 Bruce owns a shop. On 1 July 2019, he had $70,000 of trading stock on hand. During the same year, he purchased $250,000 of trading stock and had sales of $380,000. On 30 June 2020 he had $45,000 in trading stock on hand. Required: What is his taxable income for the 2020 tax year assuming he has no other income or expenses? A. $380,000 B. $130,000 C. $105,000 D. $25,000 E. $155,000 Q6 Which of the following transactions is eligible assessable income in the hands of a prescribed person? A. None of the above B. Net business income from the minors own online business venture C. Interest earned from the re-investment of income from a deceased estate D. Income distributed to the minor from a deceased estate E. Wages from the minors own part time employment Q7 Sophie is employed by CAB Bank as a financial accountant. During the 2020 income year, Sophie incurred the below expenses in connection with fulfilling her duties as an employee: Train fares from home to CABs head office - $ 1,700 Business suit as mandated in the banks staff manual - $ 1,400 Lunch expenses when Sophie is unable to pack food - $250 Reading glasses when she left hers at home - $50 Calculate Sophie's allowable deductions for the 2020 financial year. A. $1,700 B. $3,100 C. $3,400 D. None of the above E. $1,400 Q8 In relation to Trusts, select the FALSE statement: A. The trustee is the legal owner of the trust property B. The Beneficiary holds the equitable rights in the trust property C. The Estate is the document establishing the trust and setting out the terms of the Trust D. The Corpus is the subject matter of the trust eg land, shares, royalties etc E. A settlor establishes the trust by transferring the trust property to the trustee to hold for the beneficiaries