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Sarah is employed as a personal assistant to Martha, a successful freelance lifestyle consultant and...

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Accounting

Sarah is employed as a personal assistant to Martha, a successful freelance lifestyle consultant and motivational speaker. Recently, Martha found out that Sarah has sent an email to all of Martha's clients describing her as "a fraud and a bully." Unfortunately, the email had been passed on to a popular gossip website and it is running as its lead story. Martha realises immediately that this could seriously impact upon her business. She seeks advice from her lawyer, which includes preparing a defamation suit. Her legal fees was $10,000.Required: Advise Martha on the deductibility of legal fees

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