Question
Week 4 John owns a convenience shop called City Conv. The following events occurred for John during 2019- 2020 financial year. (i) John incurred legal
Week 4 John owns a convenience shop called City Conv. The following events occurred for John during 2019- 2020 financial year. (i) John incurred legal expenses as he was sued for false advertising. (ii) John purchased new fridge to the shop - $800. In addition, his builder added more space to the shop front. This cost him $22,000. (iii) John ordered 1000 new T-shirts with printed City Conv's logos for marketing purposes. These costs him $1,500. (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)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started