Question: db pty ltd carries on a business with an annual...
DB Pty Ltd carries on a business with an annual turnover of $11million per annum. Towards the end of the income year ended 30 June 2018, the company incurred the following outgoings, all of which exclude GST:
- Prepaid insurance expenses of $12,000 on 1 May 2018 for the period 1 May 2018 to 30 April 2019.
- Prepaid employee bonuses totalling $120,000 on 1 June 2018 representing bonuses that would otherwise have been due for payment on 1 July 2018.
- Prepaid advertising of $900 on 1 June 2018 for an online advertising campaign that will run for the next 10 months.
Advise DB Pty Ltd how much, if any, of each of the payments would be tax deductible in the year ended 30 June 2018.