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Merry is a chef. She runs her own restaurant business. During the year, Merry incurred...

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Accounting

Merry is a chef. She runs her own restaurant business. During the year, Merry incurred the following expenses.

Advise Merry as to whether the expenses below would be deductible for income tax purposes.

  1. Salary costs to casual employees of $50,000.

  1. Partly Deductible
  2. Non-deductible
  3. Fully Deductible

  1. Salary costs of $2,000 to her sister (the amount is excessive, compared to the same job performed by others).

  1. Partly Deductible
  2. Non-deductible
  3. Fully Deductible

3. Travel costs of $8,000 for travel from her home to her restaurant.

  1. Partly Deductible
  2. Non-deductible
  3. Fully Deductible

4. $12,000 on protective clothing like spectacles and gloves for herself and staff.

  1. Partly Deductible
  2. Non-deductible
  3. Fully Deductible

5. $3,000 on a course which educates her about a new cuisine that she can add to her restaurant menu.

  1. Partly Deductible
  2. Non-deductible
  3. Fully Deductible

Choose A , B or C as right answer please.

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