On 1 Jan 2021 the computer that Mohan uses in his business refused to start. It would have cost $3,500 to have it repaired. Instead, Mohan installed a new computer costing $4,000 on 1 May 2021.

On the 1st June 2021 Mohan also paid the electricity bill on his office in the amount of $750.On the same day he paid $2,500 for a flat screen television for his use at home to watch Ash Barty play tennis..

Explain whether these transactions are deductible against the income of the business for the year ending 30^th June 2021 and state the applicable sections of ITAA 97 and/or ITAA 36

The answer must include an analysis of the pertinent sections of the relevant legislation, rulings and the relevant case law and give reasons

Answer rating: 100% (QA)

Based on the information provided well analyze whether the transactions are deductible against the income of Mohans business for the year ending 30th ... View the full answer