1 Which of the following statements in relation to capital…
Question Answered step-by-step 1 Which of the following statements in relation to capital… 1 Which of the following statements in relation to capital allowances is least correct? a.Low-cost assets can be allocated to a low-value pool. b.A balancing adjustment is generally calculated as the difference between the termination value and the adjustable value. c.Depreciation deductions are available to business taxpayers only. d.The car depreciation cost limit for the current income year is $60,733. e.The diminishing value method of depreciation is available for second-hand assets. 2 During the current income year ended 30 June Anne received gross wage income of $56,000, interest income of $2,000, a net capital gain of $5,000 and rent income of $11,000. What is Anne’s assessable ordinary income for the year ended 30 June 2022? a.$67,000 b.$58,000 c.$69,000 d.$72,000 e.$56,000 3 Which of the following items would not constitute trading stock “on hand”? a.Demonstrator motor vehicles owned by a car dealership which will be sold to the public once they have travelled a certain number of kilometres. b.Trout in a trout farm breeding pond which will be caught and sold. c.Land held by a property developer. d.Shares held by a share trader business. e.Computer spare parts of a computer supply business. 4 Which of the following is most likely to be GST-free food? a.Mushrooms sold by a restaurant for consumption in the restaurant. b.Chocolate muffins sold in a coffee shop. c.Watermelon sold in a supermarket for consumption at home. d.Ice-cream sold in a supermarket for consumption at home. e.Steak sandwich sold in a take-away food outlet. 5 In relation to assessable income, which of the following statements is least correct? a.Income is generally cash or cash convertible. b.There must generally be an established nexus for something to be regarded as income. c.GST collected is a type of non-assessable non-exempt income. d.Under the ‘replacement principle’ compensation proceeds will always be treated as capital. e.Income is often likened to the ‘fruit’ of a tree. Law Social Science Tax law ACCOUNTING 200187 Share QuestionEmailCopy link Comments (0)
