please answer all questions in detail with cases and sections mentioned in the answer, only use australian tax standards in answer.
both please. 9:17 ..4G D Practice Exam Questions for AC… i . All questions must be answered, but students can choose order • Answers must be supported by appropriate references to legislation and cases (refer to weekly workshop questions and solutions as a guide) Question 1 Betty Dukakis is aged 45. an Australian resident and single. She works with Essentials Ltd in Melbourne. During the year she was also a partner in the partnership of PlayALot Children's Toys. Betty provides you the following information regarding the year ending 30.06.2016: • Received an annual salary of $50.000 from Essentials Ltd (employer). • Received a fully franked dividend of $3.500 from BHP on 1 April 2016 • In September 2015 she purchased a vase for S490. In June 2016 she became aware that it was a rare Japanese antique and sold it at an auction for $35.000 • Essential Ltd (employer) provided her a fully maintained company car on 1 October 2015. The car cost $25.000 and it was used 25% for business purposes. The employer is entitled to GST credits in relation to this expense. • Distribution of Partnership Profits from the partnership of PlavALot Children's Toys was $20.000 Required a) What are the income tax consequences for Betty Dakakis in relation to the above events for the year ending 30.06.2016 b) Calculate the FBT liability for Essentials Lid for the year ending 30.06.2016. In your response ensure you state the appropriate legislation, tax rulings or common law cases to support your answer 116 Marks Question 2 Wishine to diversify their business The Party Shop Pty Lid, a party decoration shop which had stores around Australia, decided to sell their Adelaide store on September 2015. The Adelaide store was estimated to have a current market value of $1.500.000 but was acquired in 1984 at a cost of $500,000 Willing to obtain the best advantage possible, they decided to subdivide the store into 5 smaller shops and sell them individually. In March 2016 the subdivision was completed at a total cost of $500,000 and all the stores were sold for a price of $1,000,000 cach. However, on the 30.06.16 they had only received the payments regarding 3 of them. Required Advise The Party Shop Pty Ltd of the tax consequences arising from the sale of their Adelaide store. In your response ensure you state the appropriate legislation, tax rulings or common law cases to support your answer 115 Marks! Question 3