Jeremy Norton is a property investor and the owner of a French bakery in Balmain. All payments are fully substantiated Receipts Cash Sales 275,240 Cash received from Debtors 15,700 Rent received (See Note 3) 21,000 Ten Year business loan from NAB bank 1/11/21 40,000 Contra from plumber 1,200 Payments Payments to creditors for trading stock 95,650 Speeding fine paid in making deliveries 180 Loan repayments – principal 4,700 -Interest 4,000 Borrowing costs on business loan 4,000 Wages- spouse (the ATO considers $35,000 to be reasonable) 65,000 - Other staff 24,000 Repairs to shop caused by storm damage on 31/3/2022 4,800 Superannuation-self 23,000 -Other staff 8,000 Drawings 17,000 Membership of Balmain business Club 250 Entertainment of suppliers at above club 750 Staff Christmas party 670 FBT paid for christmas party 450 Rental Property Expenditure Painting in interior following departure of tenant 4,000 Repairs to dishwasher 320
Jeremy Norton is a property investor and the owner of a French bakery in Balmain. All payments are fully substantiated
Receipts
|
Cash Sales |
275,240 |
|
Cash received from Debtors |
15,700 |
|
Rent received (See Note 3) |
21,000 |
|
Ten Year business loan from NAB bank 1/11/21 |
40,000 |
|
Contra from plumber |
1,200 |
|
|
|
|
Payments |
|
|
Payments to creditors for trading stock |
95,650 |
|
Speeding fine paid in making deliveries |
180 |
|
Loan repayments – principal |
4,700 |
|
-Interest |
4,000 |
|
Borrowing costs on business loan |
4,000 |
|
Wages- spouse (the ATO considers $35,000 to be reasonable) |
65,000 |
|
- Other staff |
24,000 |
|
Repairs to shop caused by storm damage on 31/3/2022 |
4,800 |
|
Superannuation-self |
23,000 |
|
-Other staff |
8,000 |
|
Drawings |
17,000 |
|
Membership of Balmain business Club |
250 |
|
Entertainment of suppliers at above club |
750 |
|
Staff Christmas party |
670 |
|
FBT paid for christmas party |
450 |
|
Rental Property Expenditure |
|
|
Painting in interior following departure of tenant |
4,000 |
|
Repairs to dishwasher |
320 |
Additional Information
1. Jeremy takes trading stock home to consume with his wife Joan and children aged 2 and 7. He will use the commissioner’s estimate for trading stock
2.
|
|
1/7/2021 |
30/6/2022 |
|
Trading stock on Hand |
2,500 |
2,400 |
|
Debtors |
900 |
1,500 |
|
Creditors |
1,600 |
400 |
3. At 30 June 2022, Jeremy’s tenant owes him $1,000 rent
Required: Calculate taxable income of Jeremy for the year ended 30 June 2022
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