1. Jeff Thomson owns a mixed business and will use the ATO'S estimates for estimating trading stock taken for own use. He has a wife and 2 children aged 6 and 3. 

                 

	$
Business receipts	968,200
Bank interest on joint account with wife	5,680
Business loan from bank	100,000
Insurance recovery for loss of trading stock after storm damage at business premises	12,000
Fully Franked dividends received	10,500
Cash Drawings	78,000
Value of trading stock as 30 June 2020	15,900
Value of trading stock at 30 June 2021	22,700

Required: Calculate Jeff's assessable income for the year ended 30 June 2022.

2. Bill Baker, a single resident taxpayer, aged 34, owns a computer supplies shop. During the 2022 tax year, the following amounts were deposited into his business bank account 

	$
Proceeds of a business loan from East Pac Bank	350,000
Receipts from accounts receivable	820,000
Capital	50,000
Income Tax Refund from 2021 tax year	9,000
Insurance Recovery for loss of income after a fire destroyed his shop	90,000
Insurance Recovery for shop repairs	9,000
Insurance Recovery for his computer system which was destroyed in floor(Equal to Book Value)	30,000
Stock own use	1,000
Subsidy from supplier for promoting and referring their products	14,000

• As at 30 June 2021 Bill had accounts receivable of $38,000.
• As at 30 June 2022, Bill had accounts Receivable of $42,000.
• Opening stock $1500, Closing stock $2,500
• Bill does not have private health insurance
• During the year, Bill received $5,000 of Electricity as a contra with one of his clients.
• All deductions available to Bill totalled $690,000
• Bill has paid $71,000 of PAYG instalments during the year.
• All figures are net of GST where applicable.

Required; Calculate Bill's taxable income for the 2022 tax year.

Answer rating: 100% (QA)

Calculation for Jeff Thomsons Assessable Income 1 Business receipts 968200 2 Bank interest on joint ... View the full answer