FREE Trial
This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!

In August 2019, Macho Sports Ltd, a manufacturer of sporting equipment decided to diversify its operations by developing a range of sporting clothing. As a result, it spent $50,000 in an investigation of whether it would be feasible. In March

In August 2019, Macho Sports Ltd, a manufacturer of sporting equipment decided to diversify its operations by developing a range of sporting clothing. As a result, it spent $50,000 in an investigation of whether it would be feasible.

In March 2020, it launched a new clothing range with an initial advertising campaign of $250,000. It also paid ten stores in Melbourne $5,000 to exclusively stock their new ‘Macho Sports Clothing’ range.

Advise Macho Sports Ltd as to whether any of the above expenditures are tax deductible for the year ending June 2020.

On 1 June 2020, Macho Sports entered into a contract for the sale of the clothing business (excluding the trade mark and business name ‘Machos Sports Clothing’) for $500,000. Macho Sports incurred $11,000 in legal and accounting fees associated with the sale (including GST). Advise Macho Sports on any GST consequences of the sale. Make sure you include any applicable GST calculations


  • Expert Answer

Macho Sports Ltd expenditures which are tax deductible in the year June 2020 I View the full answer


answer-question
Related Book For  answer-question
Financial Accounting and Reporting

Financial Accounting and Reporting

ISBN: 978-0273744443

14th Edition

Authors: Barry Elliott, Jamie Elliott

See More Books
Post a Question and Get Help

Cannot find your solution?

Post a FREE question now and get an answer within minutes*.

*Average response time.
Posted Date: November 25, 2020 00:30:36
See More Questions

Students also viewed these accounting questions

Q:
For the year ending June 30, 2012, Aspen Medical Services Co. mistakenly omitted adjusting entries for (1) $2,100 of supplies that were used, (2) unearned revenue of $13,900 that was earned, and (3)...
A:
a Revenues were understated......
Q:
For the year ending June 30, 2008, Microsoft Corporation reported short-term unearned revenue of $13,397 million. For the year ending June 30, 2008, Microsoft also reported total revenues of $60,420...
A:
a Unearned Revenue......
Q:
For the year ending June 30, 2008, Ambulatory Medical Services Co. mistakenly omitted adjusting entries for (1) $1,034 of supplies that were used, (2) Unearned revenue of $6,481 that was earned, and...
A:
a Revenues were understate......
Q:
Suppose you have the following training set, and fit a logistic regression classifier : ho(x) = g(00+011+0x2) O O O Which of the following are true? Check all that apply. a) Adding polynomial...
A:
a TRUE Adding polynomial features increses how well we fit the da......
Q:
A Norman window has the shape of a rectangle surmounted by a semicircle. (Thus, the diameter of the semicircle is equal to the width of the rectangle. See Exercise 52 on page 24.) If the perimeter of...
A:
X A x 15 1 x 0 Perimeter 30 2y x 1 maximum The dimensions are a y 1......
Q:
The coefficient of kinetic friction for a 22-kg bobsled on a track is 0.10. What force is required to push it down a 6.0o incline and achieve a speed of 60 km/h at the end of 75m?
A:
A free body diagram for the bobsled is shown The accelerati......
Q:
Interpret the following symbolized arguments in light of the eight argument forms presented in this section. In some cases a symbolized argument must be rewritten using commutativity or double...
A:
Click to View...
Q:
Valley Company's adjusted trial balance on August 31, 2013, its fiscal year- end, follows. On August 31, 2012, merchandise inventory was $ 25,400. Supplementary records of merchandising activities...
A:
1 Net sales Sales 225 600 Less Sales discounts 2 250 Sales returns and allowances 12 000 Net sales 2......
Q:
design and implement a database for an organization from scratch, i.e., from understanding the organization's data requirements to designing and implementing a relational database for them. You are...
A:
Step 1 of 1 Company Details Name MedLife Website https www medlife com Main business Online pharmacy......
Q:
The sum of the base and the height of a parallelogram is 69 cm. Find the dimensions for which the area is a maximum.
A:
Let b the length of the base Then 69 b the height and A b......
Q:
For Leslie Douglas, a lawyer, determine which of the following actions represent revenue (R), expense (E) or neither (N) for the month of July 2015. Hint: Be careful with the timing of the...
A:
The detailed answer for the above question is provided below 1 R Leslie Douglas received 500 on July......
Q:
For this assignment you will be creating a Python script to lookup phone numbers in a data file given a user-provided last name, or a first and last name. The script should look up all entries in the...
A:
Solution PROGRAM CODE while True ask user to enter a name askName input Enter a last name or first a......
Q:
Write a program to implement the pseudocode given below for the procedural Fish example: Sub feed (Byref state, Byref size) sizesize + 1 Output "Fish fed" If size = 5 Then "FISH" state End If End Sub...
A:
Ta......
Q:
Develop two algorithms, one based on a loop structure and the other on a recursive structure, to print the daily salary of a worker who each day is paid twice the previous day's salary (starting with...
A:
Click to View...
Q:
Write a speech according to the requirements below: Create a speech about Hermione (Harry Potter and the Sorcerer's Stone) First book. The speech should have an attention-grabbing introduction,...
A:
Ladies and gentlemen esteemed Potterheads and fellow enthusiasts of the magical world thank you for gathering here today I want to transport you to a realm where broomsticks soar spells ignite and cou......
Q:
Ding Bhd. is a job order based company. On 1 August 2020 there was an incomplete job in the factory. The job card for this work is summarised as follows:- Job card, Job No 1113 Costs to date Direct...
A:
a Summarized Job Cost Cards Job 1113 Direct Materials RM 150 Direct Labour RM 250 Production Overhea......
Q:
Determine the inverse Laplace transform of the given function F(s), using partial fractions approach. F(s) = 3s +2 (s+2) (s+5) (Hint: Use the relations given below as applicable).
A:
The detailed......
Q:
Where are the olfactory sensory neurons, and why is that site poorly suited for their job?
A:
The receptors are located i......
Q:
Alpha has owned 80% of the equity shares of Beta since the incorporation of Beta. On 1 July 20X6 Alpha purchased 60% of the equity shares of Gamma. The statements of comprehensive income and...
A:
i Consolidated statement of comprehensive income for the year ended 31 March 20X7 000 Revenue 180 000 120 000 9 12 106 000 20 000 10 000 W1 349 500 Cost of sales balancing figure 172 770 Gross profit......
Q:
As chief accountant at Italin NV, you have been given the following information by the director of research: Project Luca 000 Costs to date (pure research 25%, applied research 75%) .......... 200...
A:
IAS 38 Pure and applied research always written off in period incurred development expenditure may b......
Q:
Sunhats Ltd manufactures patent hats. It carries inventor y of these and sells to wholesalers and retailers via a number of salespeople. The following expenses are charged in the profit and loss...
A:
The principle usually followed is to include only those expenses that relate to the bringing of the......
Q:
The rectangular coordinates of a point are (2, 2, -1). Find the cylindrical and spherical coordinates of the point.
A:
r 4 4 22 z 1 tan 0 3 12 1 and the point......
Q:
The polar coordinates of a point are (5.3 m, 32o). What are the points Cartesian coordinates?
A:
x r cos q......
Q:
The rectangular coordinates of a point are given. Find polar coordinates for the point. (3, 0)
A:
2 r x y 3 0 9......
Q:
Question 4 The following is the baseline case that we have for Albion Computers in the class, where the exchange rate will remain at $/=1.60: Sales (50,000 units at 1,000/unit) Variable costs (50,000...
A:
Step 1 3 Total sales under the alternative scenario can be calculated by multiplying the sales volum......
Q:
Crescendo Srl operates a large store in Milan. The store has both a film (video/ DVDs) section and a musical (compact discs and tapes) section. Crescendo reports revenues for the film section...
A:
Cost object Film section of store Cost variability With respect to c......
Q:
Use the Gauss-Seidel method (a) Without relaxation and (b) With relaxation ( = 0.95) to solve the following system to a tolerance of S = 5%. If necessary, rearrange the equations to achieve...
A:
The equations should first be rearranged so that they are diagonally dominant Each can be solved for......
Q:
Q A When possible, determine the truth values of the following symbolized statements. Let A and B be true, Y and Z false. P and Q have unknown truth values. If the truth value of the statement...
A:
Click to View...
Q:
French Broad Inc., operating at full capacity, sold 25,125 units at a price of $75 per unit during 2008. Its income statement for 2008 is as follows: The division of costs between fixed and variable...
A:
1 2 a 30 753 750 25 125 units b 45 75 30 3 4 5 6 7 8 In favor of the proposal is the possibility of......
Q:
Are there tax credits for the 2021 tax year that were announced after April 2021, when the textbook went to print? Explain the purpose of the disabled access credits and identify several examples of...
A:
As of my knowledge cutoff date in September 2021 I can provide some general information regarding tax credits and deductions including the disabled ac......
Q:
Diane Bernick has opened Bernicks Consulting. Journalize the following transactions that occurred during January of the current year. Use the following journal pages: January 110, page 1, and January...
A:
GENERAL JOURNAL PAGE 1 date description POST ref debit credit 1 20 Jan 1 Cash 101 12 0 0 0 00 1 2 Di......
Q:
The rectangular coordinates of a point are given. Find two pairs of polar coordinates (r, ) for each point, one with r > 0 and the other with r < 0 Express in radians. (2, 0)
A:
The point 2 0 lies on t......
Q:
The rectangular coordinates of a point are given. Find two pairs of polar coordinates (r, ) for each point, one with r > 0 and the other with r < 0 Express in radians. (3, 4)
A:
The point 3 4 lies in quad......
Q:
How will you prepare for interviewing a chef? What questions will you ask?
A:
The interviewer must be aware of details like the cuisine the restaurant is into the maximum compens......
Q:
What kinds of excitation mechanism can cause an e- to make a transition from the top of the valance band (VB) to the minimum or bottom of the conduction band (CB)? Draw a band structure to illustrate...
A:
Click to View...
Q:
If 200 units were sold during the month 1. Find the number of units left on hand at end of June 2. Compute cost of goods sold with FIFO method 3. Compute Ending Inventory amount with FIFO method 4....
A:
To calculate the number of units left on hand at the end of June and to compute cost of goods sold using both the FIFO First In First Out and LIFO Las......
Q:
Diallo Corp. has pretax financial income of $5,189,000 in 2021, and $4,173,000 in 2022. Due to tax recognition of installment sales upon collection, 2021's taxable income is $145,000 lower than book...
A:
To calculate the deferred tax asset or liability that Diallo Corp will report on it......
Q:
The history of the managers of a pension fund states that they produced a mean return of 5% with a variance of 4%. To test the claim of pension fund Junior Investors, a hypothetical group of...
A:
The variance of the sampling distribution of sample mean returns of managers is equal to the popu......
Q:
Follow the instructions to work through the calculation of cost per billable test for a drug screen composed of five independently measurable assays, using the following information: . Instrument was...
A:
To calculate the annual reagent cost for the drug screen composed of five indep......
Q:
Mario has a small garden where he raises eggplant and tomatoes. He consumes some of these vegetables, and he sells some in the market. Eggplants and tomatoes are perfect complements for Mario, since...
A:
a Let x eggplant y tomatoes Given he consumes x y 1 1 value of endowment 5 x 5 y x y 30 10 Value 5 3......
Q:
Explain why it is not wise to accept a null hypothesis.
A:
All we can determine is how unlikely the sample results would be wh......
Q:
Graph the feasible region for the following linear optimization model: Maximize 3x + 4y Subject to -x + 2y 8 x + 2y 12 2x + y 16 x, y 0
A:
Blue x 2y 8......
Q:
In Problems, the graph of the boundary equations for each system of inequalities is shown with that system. Locate the solution region and find the corners. y x + 3y 2 6 2x + 4y 2 10 2x + 4y = 10 3x...
A:
a b From the graph we read inte......
Q:
Graph the feasible region of each system of inequalities. Find the coordinates of each vertex. Then identify the point that maximizes the given expression. a. Maximize: 1.65x + 5.2y b. Maximize: 6x +...
A:
a Vertices 0 4 2 625 2 25 3 0 0 2 Find the vertex that maximizes 1 65x 5 2y 0 4 1......
Q:
A 0.500-kg block, attached to a spring with length 0.60 m and force constant 40.0 N/m, is at rest with the back of the block at point A on a frictionless, horizontal air table (Fig. 7.44). The mass...
A:
a IDENTIFY and SET UP Apply K U Wother Kg Ug to the motion from A to B EXECUTE K 0 K mv U0 U UB kx w......
Q:
What corporate governance mechanisms may be involved in the case of microfinance?
A:
Strategic control involves the process of monitoring and correcting a firms strategy and performance Corporate governancerefers to the need for a firm......
Q:
[F (N U)] H Identify the main operator in the following propositions.
A:
Click to View...
Q:
Elegant Decor Companys management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The companys 2013 departmental income statement...
A:
Part 1 ELEGANT DECOR COMPANY Analysis of Expenses under Elimination of Department 200 Total Eliminated Continuing Expenses Expenses Expenses Cost of g......
Q:
In the following circuit, let V1 = 9 V, R1 = 2.0 kQ2, R2 = 2.5 kQ2, R3 = 1 KQ, R4 = 6 KQ. Find the constant A, such that the decay constant of Capacitor 2 (Tdecay) is 2 milliseconds. V1 R1 1 mF www...
A:
In a two step binomial pricing model we can model the trader s investment in Arrow Debreu securities as a portfolio of these securities to ensure a pa......
Q:
Work these problems relating to after-tax cash flow (ATCF) computations: 1. Compute the present value after-tax cost ("PVATC") of a $9,500,000 purchase of equipment on January 1 that your corporate...
A:
Click to View...
Q:
Determine whether the function defined is one-to-one. 1(x)=18-x Is the function one-to-one?
A:
2 This Dr Taking the ing both sides y tugtug X X 91 X 2 shows that eit......
Q:
Let S = {1,2,3} and T: Fun(S) R be the linear transformation T(f) = (f(1)-2f(3), -2f(1)-2f(2)-f(3), 2f(2) +2(3)) Compute T(f) if f = 3x1+3x2+ X3 T(f) = (Enter your answer as a vector using "(" and...
A:
solo As S 112 3 and T Fun S P be a......
Q:
Forty bus drivers were asked how many hours they spend each day running their routes (rounded to the nearest half hour). Find the 93th percentile. Amount of time spent on route (hours) 2 3 4 5 The...
A:
Given bata Amount of time spent on route hours 2 3 5 Pg3 frequency 1 11 1......
Q:
How should stock be valued in a balance sheet? A. At the lower of net realisable value and selling price B. At the lower of replacement cost and net realisable value C. At lower of cost and...
A:
Stock inventory should be valued on a balance sheet using the principle of......
Q:
A club's records provide the following information for a year. The club's policy is to credit life subscriptions to the Income and Expenditure Account over five years. How much should be credited to...
A:
To calculate how much should be credited to the Income and Expenditur......
Q:
The following information relates to a club for a year. How much should be credited to the club's Income and Expenditure Account for annual subscriptions for the year? A. $1100 B. $1160 C. $1200 D....
A:
To calculate the amount that should be credited to the club s Income and Exp......
Q:
Because of illness, Achmed's annual stocktaking, which should have taken place on 31 March 2001, was not completed until 7 April 2001, and was undertaken by an inexperienced member of the staff....
A:
To calculate the correct value of the closing stock at March 31 2001 we need to account for the adju......
Q:
A manufacturing company adds a factory profit of 25% to its cost of production. The following information is available: How much will be credited as factory profit in the Profit and Loss Account for...
A:
To calculate the factory profit credited in the Profit and Loss Account for the yea......
Q:
Suppose a solid disk of positive charge with radius R and a uniform surface charge density is located in the xy-plane, centered on the z-axis. Very far above the disk there is an electric dipole...
A:
Click to View...
Q:
What are the three kinds of research types? Explain each type.
A:
The three main types of research are exploratory research descriptive research and explanatory research Each type serves a different purpose and is co......
Linear Algebra 1st Edition - ISBN: 978-0982406212 - Free Book