Housebuilt Manufacturers Pty Ltd is a large company that produces tile products. The company's average turnover for the last three tax years is $12 million. On 1 June 2022, it incurs $120,000 in relation to a 12-month cleaning contract for its offices, that will operate until May 2023. i) What deduction, if any, would be available in respect of the payment for the year ended 30 June 2022? ii) Would your answer change if the company's average turnover was only $700,000? iii) Housebuilt engaged a lawyer to review the cleaning contract before signing it. Housebuilt received an invoice for $2,500 from its lawyer. iv) Housebuilt is also required to pay a deposit of $5,000. Required For each situation above, please state whether the payment is deductible. State the amount deductible where applicable.?

Answer rating: 100% (QA)

i In respect of the payment for the year ended 30 June 2022 The payment for the 12month cleaning con... View the full answer