Reference no: EM131348415
Answer all of the following questions.
QUESTIONS
i Michael is a surgeon. This was a stressful occupation. For relaxation Michael took a keen interest in gardening. Michael lives on 1 hectare of land and on this land he has an extensivegarden. He has also taken a number ofcourses in landscape design and flower arranging. Heoften sells flowersto friends to others who approach him to do flower arrangements. Most of his flower arrangements are for weddings, funerals, birthdays, anniversaries and other special occasions. He earns around $8,000 from his flower arrangements. As a surgeon Michael earns around $350,000 per year. Is the amount he receives from the sale of the flower arrangements assessable income and on what basis? Fully explain your answer.
ii Peter Ellis, arespected financial advisor, sued Global News for defamation. The article in Global News that Peter sued for implicated Peter in a fraudulent investment scheme. What was written about Peter was untrue and as a resulthe won his action and was awarded $100,000 damages. Is the amount of damages assessable income and on what basis? Fully explain your answer.
iii Mabel Renshaw was a very successful salesperson. She had worked for Excelsior Pty Ltd for the past 10 years. She had an extensive knowledge of the client base of Excelsior. The company was afraid that if Mabel left she would be able to utilise this information to the disadvantage of Excelsior by approaching clients of Excelsior and persuading them to do business with her rather than with Excelsior. Accordingly, an arrangement was entered into whereby Excelsior paid Mabel $70,000 not to set up herown business in competition with Excelsior, or work for a competitor of Excelsior, for a 5 year period after leaving Excelsior. Is this amount assessable income and on what basis? Fully explain your answer.
|
Bond’s value change and by approximately with percent
: You own a bond with duration of 11. You are worried that interest rates may rise and think it is likely that yields will go up 100 basis points from today’s 10%. How would your bond’s value change and by approximately with percent?
|
|
What would the risk-free rate have to be for two stocks
: Stock Y has a beta of 1.35 and an expected return of 14.1 percent. Stock Z has a beta of .80 and an expected return of 11.0 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?
|
|
About establishing credit line facility
: A company recently approached their bank about establishing a credit line facility. Estimate the cost of credit line. Assume that the firm did have cash balances to cover the required compensating balances resulting from the credit line borrowings. E..
|
|
Determine the depreciation recapture in year two
: Suppose I wish to start my own delivery service. I buy a light truck for $75,000. At the end of year zero, I purchase the truck with a 3 year loan, with 20% down, at an interest rate of 9%. Payments are scheduled to be made at the end of years 1, 2, ..
|
|
Is the amount he receives from the sale
: BLO5539 AUSTRALIAN INCOME TAX LAW AND PRACTICE - ASSIGNMENT As a surgeon Michael earns around $350,000 per year. Is the amount he receives from the sale of the flower arrangements assessable income and on what basis? Fully explain your answer.
|
|
Calculate the force exerted on the conductor
: A conductor of effective length 0.5 m is placed at right angles to a magnetic field of density 0.45 T. Calculate the force exerted on the conductor if it carries a current of 5 A.
|
|
Find an attorney to interview by searching the internet
: Find an attorney to interview by searching the Internet, checking your local phone book, or referring to the National Association of Criminal Defense Lawyers.
|
|
Calculate the flux density of the field
: A straight conductor, 8 cm long, is moved with a constant velocity at right angles to a magnetic field. If the emf induced in the conductor is 40 mV, and its velocity is 10 m/s, calculate the flux density of the field.
|
|
Determine isentropic rankine cycle thermal efficiency
: Determine the values of p5s and mass fraction y that maximize the cycle efficiency.- Determine the isentropic Rankine cycle thermal efficiency of the system without regeneration present.
|