Cally, who is married and has one child, owns a bakery. During the 2021 tax year, her Sales $ 55,000, Purchases of trading stock $ 60,000, Business Overheads $ 10,000, Opening Stock Value $ 20,000, Closing Stock Value $ 15,000, Drawings on Trading Stock, use the Commissioner’s standard values Required: Refer to sections in the legislation and/ or cases/ Tax Rulings and answer the following questions: (a) Calculate and explain Cally’s Taxable Income for the 2021 tax year. (b) If Cally hired an electrician to rewire the ovens in her shop, can she also claim his fee of $5,000 as a deduction if, on 30 June 2021, all work had been completed, but Cally is still waiting on his invoice?
Cally, who is married and has one child, owns a bakery. During the 2021 tax year, her Sales $ 55,000, Purchases of trading stock $ 60,000, Business Overheads $ 10,000, Opening Stock Value $ 20,000, Closing Stock Value $ 15,000, Drawings on Trading Stock, use the Commissioner’s standard values Required: Refer to sections in the legislation and/ or cases/ Tax Rulings and answer the following questions: (a) Calculate and explain Cally’s Taxable Income for the 2021 tax year. (b) If Cally hired an electrician to rewire the ovens in her shop, can she also claim his fee of $5,000 as a deduction if, on 30 June 2021, all work had been completed, but Cally is still waiting on his invoice?
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 36P
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Question
Cally, who is married and has one child, owns a bakery. During the 2021 tax year, her Sales
$ 55,000, Purchases of trading stock $ 60,000, Business Overheads $ 10,000, Opening Stock Value
$ 20,000, Closing Stock Value $ 15,000, Drawings on Trading Stock, use the Commissioner’s
standard values
Required: Refer to sections in the legislation and/ or cases/ Tax Rulings and answer the following
questions:
(a) Calculate and explain Cally’s Taxable Income for the 2021 tax year.
(b) If Cally hired an electrician to rewire the ovens in her shop, can she also claim his fee of $5,000 as a
deduction if, on 30 June 2021, all work had been completed, but Cally is still waiting on his invoice?
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