An Australian a company (Pty Ltd) has the following expenses. Advertising $8,000, Purchases of trading

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Question:

An Australian a company (Pty Ltd) has the following expenses.

• Advertising $8,000,

• Purchases of trading stock $90,000 Stock on hand at the beginning of the year was $11,000; at the end of year $7,000.) • Administrative expenses $15,000,

• Annual Franchise fee $20,000 (The company paid $100,000 for exclusive distribution rights to their products. The directors of decided to amortise the franchise payment over 5 years)

• Salaries $100,000,

• Fringe benefits tax $10,500,

• Depreciation $1,200 (A storage facility was constructed adjacent to the residence where the business is conducted. It is used exclusively to store trading stock. Its cost was $12,000 and is depreciated in the company's accounts at 10%pa.)

• Council rates $2,500

• Electricity $3,000

• Telephone $1,500

What expenses are tax deductable?

Case law and ITAA 97 and ITAA 36 references would be helpful.