Bathtub Ltd is a large manufacturing company with an average annual turnover of $60 million. On 1 June 2021 they pay a $120,000 upfront fee to Machine serv Pty Ltd for a 12 month contract to provide monthly maintenance to Bathtub’s machinery. Which of the following amounts would be deductible in respect of the year ended 30 June 2021?
No amount is deductible as the payment is acquiring a long-term capital advantage.
$120,000
$ 60,000
$ 12,000
$ 10,000

Answer rating: 100% (QA)

Answer 10000 As upfront fee for a 12 month contract to provide monthly maintenan... View the full answer