ACCY228: Week 13 Tutorial Questions - Accounting And Finance Assignment Help

All questions are taken from previous ACCY228 Final Exams

1. On 1 January of the current year an employer purchased a new car at a cost of $54,000. The car is given to an employee who uses it mainly for private purposes – of the 6,000 km travelled to 31 March, 900 km were for business purposes.

Expenses incurred:

• Registration and insurance for 12 months from 1 Jan 1,200
• Petrol and oil (per month) 125
• Repairs 150
• Contribution by employee for petrol and oil 100
• Air conditioner installed 6 January 4,000

Calculate the taxable value of the car fringe benefit using the operating cost method.

2. Outline the concept of negative gearing and how it could be used for someone borrowing $75,000 at 6% to purchase shares returning 4.5%

3. Tommy earns $80,000 per year and his wife Molly-Mae earns $38,000. What can they do to maximise their tax planning in relation to super, assuming Tommy’s employer pays him 9.5% super?

Part C: Calculation questions

Question 31

Anna migrated to Australia from Germany in 1990. She worked in Sweden from February 2019 to October 2019, after which she moved back to Australia. While she was away she leased her family home in Fountain Lakes, Victoria to her son.

During the 2019/2020 year, Anna sold a painting, purchased on 1 June 1998 for $3,070 and sold it on 10 April 2020 for $30,600. Anna sold shares in Fulco Pty Ltd, purchased on 15 May 1992 for $40,200 and sold on 31 May 2020 for $45,000. Anna sold a vase, purchased on 10 July 1988 for $400 and sold on 20 June 2020 for $28,000. Anna sold a rental property in Newcastle. She purchased the property on 31 May 2000 (it was constructed in 1970) for $180,000. She sold it on 28 February 2020 for $490,000. Legal expenses on the purchase were $2,519 and stamp duty on purchase was $3,700. An additional room was added on the 1 July 2005 for $40,000. Legal expenses on the sale were $3,800. Anna rented the Newcastle property from the date of purchase to the date of sale. Rental income for this year totalled $10,200. Yearly deductible expenditure, including for 2019/2020, was $14,700.

During the 2019/2020 tax year Anna made $146,000 in her job as an executive for a furniture company. $36,500 of this was earned while she was in Sweden. She incurred the following expenses:

• Travel from home to work costs $3,000
• Travel from one work site to another $1,500
• Professional clothing costs $500
• Laundry costs $100
• Childcare expenses $5,600
• Accounting fees in preparing tax statements $200
• Mobile phone expenses of $1,500, 70% for business use
• Donation to the Red Cross $100
• Self-education expenses,

Anna is doing a course on training and assessment for her own interest $2,000 Anna salary sacrificed $11,000 into super during the year. Anna also has a HEC/HELP debt of $28,000. Over the year, her employer withheld PAYG of $62,000.

• Determine whether Anna is a resident or non-resident
• Determine the CGT Anna will declare as statutory income
• Determine Anna’s taxable income
• Determine Anna’s total tax payable 

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