Anna is a jeweller and operates her own business sellingjewellery on the Gold Coast....

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Anna is a jeweller and operates her own business sellingjewellery on the Gold Coast. She opened her shop to customers on 1July 2017. Anna employs two shop assistants. The followinginformation relates to the period from 1 July 2017 to 30 June 2018:? Anna borrowed $200,000 from her bank on 1 July 2017 to purchaseequipment and stock. The bank charged interest totalling $6,000during the income year. Anna on-lent $20,000 of the loan to herdaughter at 0% interest. ? Anna leased a small shop from 1 July2017 and pays $2,000 per month in rent. ? Legal fees of $4,400 paidon 20 July 2017 for advice relating to establishing the business. ?Lockable glass display cabinets were purchased for $28,000 andinstalled on 1 July 2017. ? A laptop costing $2,200 was purchasedon 15 July 2017 to keep accounting and tax records for thebusiness. Anna took this laptop home regularly and estimated 10% ofthe time it was used for checking her personal social media andemail accounts. ? An opening party was held in the shop for a fewlocal celebrities, where Anna provided champagne and canapes to herguests. This cost $2,500 on 10 July 2017. LAW3130 AssignmentSemester 2, 2018 Page | 4 ? Jewellery was purchased from varioussuppliers throughout the year at a cost of $480,000. ? A securityfirm was paid $24,000 on 20 July 2017 to provide overnightsurveillance of the shop. The contract was paid for the period 20July 2017 to 19 July 2019. ? To keep up to date with trends indesigner jewellery, Anna attended New York fashion week. She flewbusiness class at a cost of $5,600, if she had flown economy thecost would have been only $1,800. She also paid $2,000 foraccommodation and food. She stayed in New York an extra 2 days tocatch up with friends costing $600. ? Salary and wages paid to thetwo employees totalled $65,000. Anna paid herself $80,000 from thebusiness bank account. ? Anna accrued $6,000 in her accounts forunused annual leave for her employees at 30 June 2018. Required:Provide advice to Anna on the income tax consequences of the abovetransactions for the year ended 30 June 2018. Include calculationswhere required. Assume that Anna qualifies as a small businessentity, but refer to the normal deductibility rules in the firstinstance and then cite any special rules that might apply. Supportyour discussion with reference to legislation, case law andtaxation rulings.

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Anna acquired 200000 from count on which she paid 6000 as intrigue intrigue sum deductible from pay charge On rent lease reason 240000 is deductible from net pay Lawful expenses of 4400 is additionally See Answer

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In: AccountingAnna is a jeweller and operates her own business sellingjewellery on the Gold Coast. She...Anna is a jeweller and operates her own business sellingjewellery on the Gold Coast. She opened her shop to customers on 1July 2017. Anna employs two shop assistants. The followinginformation relates to the period from 1 July 2017 to 30 June 2018:? Anna borrowed $200,000 from her bank on 1 July 2017 to purchaseequipment and stock. The bank charged interest totalling $6,000during the income year. Anna on-lent $20,000 of the loan to herdaughter at 0% interest. ? Anna leased a small shop from 1 July2017 and pays $2,000 per month in rent. ? Legal fees of $4,400 paidon 20 July 2017 for advice relating to establishing the business. ?Lockable glass display cabinets were purchased for $28,000 andinstalled on 1 July 2017. ? A laptop costing $2,200 was purchasedon 15 July 2017 to keep accounting and tax records for thebusiness. Anna took this laptop home regularly and estimated 10% ofthe time it was used for checking her personal social media andemail accounts. ? An opening party was held in the shop for a fewlocal celebrities, where Anna provided champagne and canapes to herguests. This cost $2,500 on 10 July 2017. LAW3130 AssignmentSemester 2, 2018 Page | 4 ? Jewellery was purchased from varioussuppliers throughout the year at a cost of $480,000. ? A securityfirm was paid $24,000 on 20 July 2017 to provide overnightsurveillance of the shop. The contract was paid for the period 20July 2017 to 19 July 2019. ? To keep up to date with trends indesigner jewellery, Anna attended New York fashion week. She flewbusiness class at a cost of $5,600, if she had flown economy thecost would have been only $1,800. She also paid $2,000 foraccommodation and food. She stayed in New York an extra 2 days tocatch up with friends costing $600. ? Salary and wages paid to thetwo employees totalled $65,000. Anna paid herself $80,000 from thebusiness bank account. ? Anna accrued $6,000 in her accounts forunused annual leave for her employees at 30 June 2018. Required:Provide advice to Anna on the income tax consequences of the abovetransactions for the year ended 30 June 2018. Include calculationswhere required. Assume that Anna qualifies as a small businessentity, but refer to the normal deductibility rules in the firstinstance and then cite any special rules that might apply. Supportyour discussion with reference to legislation, case law andtaxation rulings.