Question
In: Accounting
Australian Taxation Abby runs a printing business and leases a building for which she pays rent...
Australian Taxation
Abby runs a printing business and leases a building for which she pays rent of $75,000 per annum. During the year ended 30 June 2020, Abby incurred the following expenses: Painting of the exterior of the building at a cost of $12,000. The original paintwork was peeling and mouldy and did not represent the kind of look Abby wanted for her business. Re-surfacing of the dirt car park with a new non-slip cement to fill in pot-holes and create a safer environment for her customers $8,000 Replace torn awning over the front door for $1,500. The replacement awning was made of the same material as the original awning. Payment of $22,000 for a commercial embroidery machine so that Abby could introduce clothing design and printing into her business. The machine was purchased on 10 February 2020 and installed on 26 February 2020. Advise Abby if the expenses would be deductible with reference to relevant statute or other supporting documents.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Abby runs a printing business and leases a building for which she pays rent of $75,000...
Abby runs a printing business and leases a building for which
she pays rent of $75,000 per annum.
During the year ended 30 June 2020, Abby incurred the following
expenses:
Painting of the exterior of the building at a cost of $12,000.
The original paintwork was peeling and mouldy and didn’t represent
the kind of look Abby wanted for her business.
Re-surfacing of the dirt carpark with a new non-slip cement to
fill in pot-holes and create a safer environment...
Abby runs a printing business and leases a building for which she pays rent of $75,000...
Abby runs a printing business and leases a building for which
she pays rent of $75,000 per annum. During the year ended 30 June
2020, Abby incurred the following expenses: Painting of the
exterior of the building at a cost of $12,000. The original
paintwork was peeling and mouldy and didn’t represent the kind of
look Abby wanted for her business. Re-surfacing of the dirt carpark
with a new non-slip cement to fill in pot-holes and create a safer
environment...
A retailer pays $190,000 rent each year for its two-story building. The space in this building...
A retailer pays $190,000 rent each year for its two-story
building. The space in this building is occupied by five
departments as specified here.
Jewelry department
1,470
square feet of first-floor
space
Cosmetics department
3,430
square feet of first-floor
space
Housewares department
2,058
square feet of second-floor
space
Tools department
980
square feet of second-floor
space
Shoes department
1,862
square feet of second-floor
space
The company allocates 60% of total rent expense to the first floor
and 40% to the...
Ann is looking to buy an office building in 2014. She plans to rent it out...
Ann is looking to buy an office building in 2014. She plans to
rent it out for 5 years (2015-2019) and sell it at the end of
2019.
Inputs
Annual
Interest Rate
5.75%
Minimum
DSCR
1.20
Maximum
LTV
90%
Cash
Available to Close
$1,500,000.00
Asking
Price / Value
$21,257,764.62
NOI
2015
$1,381,754.70
Income Test
Maximum
Annual Mortgage Payment
?
Maximum
Loan Amount
?
Collateral Test
Maximum
Loan Amount LTV Test
?
Both
tests
Maximum
Loan Amount
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Debt Service Payment...
The business manager of a 90 unit apartment building is trying to determine the rent to...
The business manager of a 90 unit apartment building is trying
to determine the rent to be charged. From past experience with
similar buildings, when rent is set at $400, all the units are
full. For every $20 increase in rent, one additional unit remains
vacant. What rent should be charged for maximum total revenue? What
is that maximum total revenue?
To help solve the above scenario, perform an internet search for
Profit Parabola or Applications of Quadratic Functions. List...
The business manager of a 90 unit apartment building is trying to determine the rent to be charged.
The business manager of a 90 unit apartment building is trying to determine the rent to be charged. From past experience with similar buildings, when rent is set at $400, all the units are full. For every $20 increase in rent, one additional unit remains vacant. What rent should be charged for maximum total revenue? What is that maximum total revenue? To help solve the above scenario, perform an internet search for Profit Parabola or Applications of Quadratic Functions. List...
Ashley runs a small business in Boulder, Colorado, that makes snow skis. She expects the business...
Ashley runs a small business in Boulder, Colorado, that makes
snow skis. She expects the business to grow substantially over the
next three years. Because she is concerned about product liability
and is planning to take the company public in year 2, she currently
is considering incorporating the business. Pertinent financial data
are as follows: Year 1 Year 2 Year 3 Sales revenue $150,000
$320,000 $600,000 Tax-free interest income 5,000 8,000 15,000
Deductible cash expenses 30,000 58,000 95,000 Tax depreciation...
Beatrice Bainson runs a business altering and repairing clothes. When she started business on 1 January...
Beatrice Bainson runs a business altering and repairing
clothes. When she started business on 1 January 2012, she bought a
Scoopatitch II sewing machine for GH₵2,500. She depreciates sewing
machines using the straight-line method at a rate of 20% pa, and
she charges a full year depreciation in the year of acquisition and
none in the year of disposal.
The business has now grown such that
she needs a faster machine, and she will upgrade to Scoopatitch V
during December...
Transaction 6: Payment of Expenses During the month, the business pays $3,000 in cash expenses: rent...
Transaction 6: Payment of Expenses
During the month, the business pays $3,000 in cash expenses:
rent expense on a computer, $600; office rent, $1,100; employee
salary, $1,200; and utilities, $400. The effects on the accounting
equation are
ASSETS
LIABILITIES
OWNER'S EQUITY
TYPE OF OE
CASH
ACCOUNTS RECEIVABLE
OFFICE SUPPLIES
LAND
ACCT PAYABLE
SHEENA BRIGTH
BAL
15,500
3,000
500
20,000
?
?
-600
?
RENT EXP COMPUTER
-1,100
?
RENT EXP OFFICE
-1,200
?
SALARY EXPENSE
-400
?
UTILITIES EXPENSE...
Question 5 Rahim operates his Furniture business from a building taken on a monthly rent of...
Question 5
Rahim operates his Furniture business from a building taken on
a monthly rent of RO 4000 from Khalid since January 2018. The
agreement notifies that the rent has to be paid to Khalid every
three months and that it will increase every year by 5%. Rahim paid
all rental dues for 2018 but at the same time informs Khalid that
he is having financial difficulties and needs money to buy
Furniture for his business. Khalid agrees for the...
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