HI5028 TAXATION T2, 2014 ASSIGNMENT 2 SOLUTIONs
T2, 2014 ASSIGNMENT 2 SOLUTIONS
Attributable era: Friday Week 10
This provision is to be submitted by the attributable era in twain softvision (Safeassign â€“ Bb) and solid vision.
The provision is to be submitted in harmony with assessment prudence ageical in the Subject Quenchedline and Learner
It is the obligation of the learner submitting the result to secure that the result is in certainty his/her acknowledge result. Secure that when incorporating the results of others into your patience that it uprightly unquestioned.
Maximum marks: 20 (20%)
Provision 1: You should try twain parts to this provision Referablee: you should fauthentication every sections of the multiform Acts/regulations where divert.
Part 1: Case study
Periwinkle Pty Ltd (Periwinkle) is a bathtub manipulationr which sells bathtubs straightly to the exoteric. On 1 May 2013, Periwinkle granted individual of its employees, Emma, with a car as Emma does a hazard of nomadic ce result purposes. However, Emma’s manner of the car is referable restricted to result simply. Periwinkle lapsed the car on that era ce $33,000 (including GST).
Ce the age 1 May 2013 to 31 March 2014, Emma travelled 10,000 kilometres in the car and incurred expenses of $550 (including GST) on unimportant repairs that bear been reimbursed by Periwinkle. The car was referable authenticationd ce 10 days when Emma was interstate and the car was parked at the airport and ce another five days when the car was scheduled ce annual repairs.
On 1 September 2013, Periwinkle granted Emma with a hypothecation of $500,000 at an attention objurgate of 4.45%. Emma authenticationd $450,000 of the hypothecation to lapse a misemployment residence and lent the cherishing $50,000 to her wife (attention bounteous) to lapse shares in Telstra. Attention on a hypothecation to lapse peculiar goods is referable deductible occasion attention on a hypothecation to lapse proceeds-producing goods is deductible.
During the year, Emma lapsed a bathtub contrived by Periwinkle ce $1300. The bathtub simply require Periwinkle $700 to manipulation and is sold to the open exoteric ce $2,600.
(a) Advise Periwinkle of its FBT consequences arising quenched of the aloft knowledge, including ceethought of any FBT burden, ce the year extent 31 March 2014. You may arrogate that Periwinkle would be entitled to input impost credits in relative to any GSTinclusive acquisitions.
(b) How would your confutation to (a) vary if Emma authenticationd the $50,000 to lapse the shares herself, instead of lextent it to her wife?
( 12 Marks) Part 2: Question
An elicit of the asset register of Alpha Pty Ltd (â€˜Alphaâ€™) ce the 2012-13 proceeds year is as follows:
Asset Require Opening
Estimate Method Effective
Life Decline in Estimate ce
This Age Withdrawal
Computer 1,350 1,350 Diminishing
Estimate 3 years 450 900
Furniture 5,000 3,000 Prime Require 10 years 500 2,500
Cabinets 1,200 1,080 Prime Require 10 years 120 960
Every depreciable goods are ce 100% concern authentication and Alpha authentications a low-estimate pool ce every desirable goods. The withdrawal estimate of the low-estimate pool at 30 June 2013 was $5,300. Alpha lapsed a printer on 5 June 2014 ce $700.
Advise Alpha of the proceeds impost consequences arising quenched of the aloft knowledge ce
the 2013-14 proceeds year. ( 8 Marks)