QUESTION 1

Which of the followings is not likely to be blackhole expenditure:

1. ( a ) Costs of incorporating a company
2. ( b ) Costs of raising share capital
3. ( c ) Legal costs to defend a takeover
4. ( d ) Goodwill paid on acquiring a business
5. ( e ) None of the above.

QUESTION 2

Which of the following will be deductible:

1. ( a ) Fines paid due to an illegal activity
2. ( b ) Wages to a house-keeper
3. ( c ) Cost of food to dogs used as watchdogs by a plumber
4. ( d ) Fees paid to solicitor to purchase a home
5. ( e ) None of the above

QUESTION 3

Which of the following self-education expenses is specifically notdeductible?

1. ( a ) Colour photocopying.
2. ( b ) HELP payments.
3. ( c ) Student association fees over $500.
4. ( d ) Library late fees.
5. ( e ) None of the above.

QUESTION 4

What expenses would likely be deductible?

1. ( a ) Food to increase bulk for a professional wrestler
2. ( b ) Job search expenses for unemployed engineer
3. ( c ) Professional practicing fees for a psychologist
4. ( d ) Administration expenses of a tax exempt charity
5. ( e ) None of the above.

QUESTION 5

Section 8-1(2) states that no deduction is allowed under Section 8-1(1) forlosses or outgoings that are:

1. ( a ) Made specifically not deductible by another section of the ITAA
2. ( b ) Incurred in relation to producing exempt income
3. ( c ) Private or domestic in nature
4. ( d ) Capital in nature
5. ( e ) All of the above

QUESTION 6

Which of the following expenditure on work-related clothing is notdeductible?

1. ( a ) Suits worn by an accountant
2. ( b ) Uniform worn by a fast food attendant
3. ( c ) Non-compulsory uniform (registered design) purchased by a bank teller
4. ( d ) Protective helmet worn by a miner
5. ( e ) None of the above

QUESTION 7

The substantiation provision, s.900-25(1) in particular, requires alldocumentary evidence to be:

1. ( a ) On paper only.
2. ( b ) In English, or in a foreign language with a translated copy ready forinspection.
3. ( c ) On paper and at least one spare copy in electronic form.
4. ( d ) In English and translated to at least one foreign language.
5. ( e ) None of the above.

QUESTION 8

Which of the followings is a rental property deduction in the year theexpense is incurred:

1. ( a ) Interest on loan to acquire the property
2. ( b ) Costs of travelling to inspect the property
3. ( c ) Depreciation on depreciable assets acquired as part of the property purchase
4. ( d ) Stamp duty on acquisition
5. ( e ) None of the above.

QUESTION 9

Which of the following expenses can be claimed in the case of a rentalproperty:

1. ( a ) Cost of buying the property
2. ( b ) Cost of disposal of the property
3. ( c ) Travel expenses before purchasing the property
4. ( d ) Property agent's fees and commission
5. ( e ) None of the above

QUESTION 10

Which of the following are not excluded from the prepaid expenditurerules?

1. ( a ) Payments under a contract of service
2. ( b ) Amounts more than $1,000
3. ( c ) Amounts of a private nature
4. ( d ) Amounts required to be paid by court order
5. ( e ) Amounts less than $1,000