Referring to relevant statutory provisions and common law, discuss whether the following amounts would be as an allowable deduction against assessable income. a) Provision of doubtful debts of $4,200 for a detective agency. b) Speeding fines of $ 700 paid by an owner to a driver. c) An amount of $1,000 paid to a solicitor for preparing a partnership deed. d) Travel cost of a business executive to attend a trade fair in Munich paid by the employer. e) Newspapers purchased by an accountant who advises clients on financial and investment matters.
Referring to relevant statutory provisions and common law, discuss whether the following amounts would be as an allowable deduction against assessable income. a) Provision of doubtful debts of $4,200 for a detective agency. b) Speeding fines of $ 700 paid by an owner to a driver. c) An amount of $1,000 paid to a solicitor for preparing a partnership deed. d) Travel cost of a business executive to attend a trade fair in Munich paid by the employer. e) Newspapers purchased by an accountant who advises clients on financial and investment matters.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Referring to relevant statutory provisions and common law, discuss whether the following amounts would be as an allowable deduction against assessable income.
a) Provision of doubtful debts of $4,200 for a detective agency.
b) Speeding fines of $ 700 paid by an owner to a driver.
c) An amount of $1,000 paid to a solicitor for preparing a partnership deed.
d) Travel cost of a business executive to attend a trade fair in Munich paid by the employer.
e) Newspapers purchased by an accountant who advises clients on financial and investment matters.
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