QUESTION 2.J5   (Ot. her receipts while conducting business)

The following are residenttaxpayers that derive income from conducting

business.

• . Quentin conducts business as a generalmedical practitioner. During the year, he received$79,000 in fees direct from patients, and

$154,OOO in receiptsfrom Medicare.

• . Warren derives business income as a removalist. During the year, due to an error by his mechanic, Warren's truck was off the road for 4 weeks and eventually written off as irreparable. All figures are exclusive of GST where applicable. He received the following amounts from his insurance company:

Reimbursement of deductible truck repairs $ 14,OOO Demurrage (compensation for loss of income) 16,OOO Proceeds for disposalof Truck(equal to book value)75,000

• . Sandy operates a general food store. During the year, his store was subject to two armed robberies. He received the following amounts from his insurance company (exclusive of GST):

Loss of cash salesfrom robberies                         $ 21,OOO

Loss of Trading Stock                                               7,800

Reimbursement of deductible shop repairs              3,200

For each taxpayer, calculate their assessable income from conducting business forthe 2021/22 income year.

Answer rating: 100% (QA)

To calculate the assessable income for each taxpayer we need to determine the total income received ... View the full answer