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Question: 1 borrowing costs of 5000 were paid on 1 january...

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1. Borrowing costs of $5,000 were paid on 1 January 2020 for a loan that was established to purchase a principal place of residence and a rental property of equal value. The term of the loan was for 6 years. Which of the following would be considered most accurate in relation to the amount of borrowing costs that would be considered deductible in the 2020 tax year?

Select one:

None of these

$250

$500

$5,000

$2,500

 

12. Peter and Paul form a partnership to run their lawn-mowing business. They agree to share the profits and losses of the partnership equally.

The partnership agreed the following salaries be paid:

Peter

$40,000

Paul

$24,000

The partnership accounting profit after salaries had been paid was $30,000.

What is the partnership net income (s90) to be shown on the partnership return statement of distribution?

Select one:

$94,000

$15,000

None of these

$64,000

$30,000

 

13. Your net capital gain in an income year is equal to:

Select one:

Your total indexed and discount capital gains for the year less your total capital losses (including any net capital losses from previous years) less any CGT discount and CGT small business concessions to which you are entitled.

None of these

Your total proceeds for the year less the total cost base for all assets sold during the year (minus any CGT discount).

Your total capital proceeds for the year less any CGT discount and CGT small business concessions to which you are entitled.

Your total capital gains for the year less your total capital losses (including any net capital losses from previous years).

 

14. Shannon is a resident for the full year and has given you the following information for the preparation of her income tax return for 2019/20:

Wage income 

$27,000

Investment income 

$1,700

Allowable Deductions 

$175

PAYG (W) per payment summary 

$3,576

PAYG (I) on investment income paid 

$43 per quarter

Calculate Shannon’s tax credits for the 2019/20.

Select one:

$43

$3,576

$3,619

$3,748

None of these

 

15. Who holds the legal title to the trust property?

Select one:

Settlor

Beneficiary

Trustor

Trustee

None of these

 

16. Which of the following is not a requirement for a taxable supply?

Select one:

It is for consideration

It is made in the course of an enterprise

It is connected with Australia

All of these

It is GST free or input taxed

 

17. Jamie purchases a rare coin on 1 April 2013 for $600 and then sells it on 20 August 2019 for $5,000 and has a carry forward capital loss from the 2019 tax year from sale of jewellery of $2,000.

What is Jamie's Net capital gain in 2020?

Select one:

$1,200

$4,400

None of these

$2,200 and $2,000 capital loss to carry forward.

$2,400

 

18.Lennart is currently working as a kitchen hand. Which of the following expenses incurred by Rebel can be claimed as a deduction?

Select one:

A food hygiene seminar she paid to attend

The cost of parking near the restaurant on the day of the seminar, as she needed to drive directly to the seminar after work.

None of these

All of the above.

A vocational course Lennart is undertaking in real estate.

 

 

 

 

 

 

 

19. The income tax rates applicable to a taxpayer in Australia depend upon:

Select one:

All of these

Whether you use the cash or accruals method to recognise income.

Whether you are a minor or not.

Whether you are an employee or a contractor.

Which state you live in

 

20. Helen and Harriet form a partnership to run their grocery retail business. They agree to share the profits and losses of the partnership equally.

The partnership agreed the following salaries be paid:

Helen

$30,000

Harriet

$45,000

The partnership accounting profit after salaries had been paid was $20,000.

According to the partnership agreement, what is the amount of the partnership distribution attributable to Helen?

Select one:

None of these

$30,000

$10,000

$47,500

$40,000

 

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