【Answers need law support】
1. Nola, who is employed by a bank, is a single resident taxpayer with private health insurance. She earns a salary of $120,000 a year, and she owns a rental property which she receives rent income of $15,000 per year and $4,000 interest. During the year, Nola spent $4,000 dining in fine restaurants, $4,000 in self – education expenses, $2,000 to find a someone to walk her pet dog, $15,000 of investment property repairs and $3,000 of car expenses.
a. Calculate Nola’s taxable income.
b. Calculate the basic income tax liability on the taxable income.
2. Pancras Ltd finished tax year 2015-16 with trading stock at cost of $15 million. During 2016-17 sales totalled $150 million and purchases totalled $60 million. Closing stock at cost at the end of the period was $10 million, its replacement value was $20 million and market selling value $7 million. Calculate the company’s assessable income alternatives for 2016-17.