Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Week 3 Gary owns a commercial building and leased his premises to John to conduct a bakery business. Under the lease contract, John is obliged

image text in transcribed
image text in transcribed
Week 3 Gary owns a commercial building and leased his premises to John to conduct a bakery business. Under the lease contract, John is obliged to repair any modified or damaged parts of the building after the lease term. However, John fails to repair Gary's building, which was damaged due to machinery and fixtures'instalments. John agreed to pay Gary $3,100 to cover the repair expenses. Required: with reference to relevant legislation and case law discuss the tax treatment of this payment for Gary. (10 marks, maximum 300 words) Week 4 John owns a convenience shop called City Conv. The following events occurred for John during 2019- 2020 financial year. (0) John incurred legal expenses as he was sued for false advertising. (1) John purchased new fridge to the shop - $800. In addition, his builder added more space to the shop front. This cost him $22,000. (ii) John ordered 1000 new T-shirts with printed City Conv's logos for marketing purposes. These costs him $1,500. w (iv) John received a City of Sydney fine for putting his sales item for display outside his shop without a permit. He required to apply for a permit to use the footpath. Required: With reference to relevant legislation and case law advise John on the assessability and/or deductibility of above events. (10 marks, maximum 300 words)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing The Modern Hospital

Authors: B. J Hall

1st Edition

0130516724, 978-0130516725

More Books

Students also viewed these Accounting questions