Calculate assessable income including deemed income

Assignment Help Accounting Basics

Reference no: EM132753226

Question: Dame Nellie, a 67 year old widowed retiree wants to apply for a Centrelink payment. Over the past 5 years, she has gifted $50,000 of her savings to her children. She earns $10,000 per year working part time as a wedding singer and owns an investment property, with a mortgage of $10,000 outstanding, which earns $12,000 per year in rental income. She has an account-based super fund balance of $140,000. She owns the home that she lives in, and has the following assets:

Asset Total Asset Value

Investment property $260,000

Share Portfolio $20,000

Bank Savings Account $17,000

Car $6,000

Funeral Bond $13,000

Furniture $10,000

Jewellery $3,000

a. Calculate assessable income, including deemed income.

b. Calculate the pension using the income test based on assessable income.

c. Calculate the pension using the assets test based on assessable assets

Reference no: EM132753226

Questions Cloud

Find the standard deviation of the market portfolio : Find the standard deviation of the market portfolio using the following information:

What abc warranty liability at the year-end are : 20X1 they spent $175,000 on repairs related to the warranties from 20X0 and 20X1. ABC's warranty liability at the year-end 20X0 and 20X1 are?

Calculate the standard deviation of pelle portfolio : Calculate the standard deviation of Pelle's portfolio, where he has invested 50 % of his money in Axfood and 50 % in Telia Sonera.

Prepare journal entries to show two possible methods : Prepare journal entries to show two possible methods of recording the admission of Alice on the partnership books

Calculate assessable income including deemed income : Dame Nellie, a 67 year old widowed retiree wants to apply for a Centrelink payment. Over the past 5 years, she has gifted $50,000 of her savings to her children

Probability of financial institutions failures : In your opinion, should regulations be designed to lower the probability of financial institutions' failures or lower the social costs of financial institutions

Differentiate between nominal and real interest rate : 1. Differentiate between nominal and real interest rate. What is the relationship between real interest rate and Purchasing power parity?

What is the outstanding balance of the lease liability : Technoid Inc. sells computer systems. What is the outstanding balance of the lease liability in Lone Star's June 30, 2018, balance sheet?

What is the net present value of the investment : X Company is considering conducting an immediate advertising campaign in order to increase sales of one of its more popular products. The marketing department.

User Account

All Pages