Nola, who is employed by a bank, is a single resident taxpayer with private health insurance.

1.    Nola, who is employed by a bank, is a single resident taxpayer with private health insurance. She earns a salary of $120,000 a year, and she owns a rental property which she receives rent income of $15,000 per year and $4,000 interest. During the year, Nola spent $4,000 dining in fine restaurants, $4,000 in self - education expenses, $2,000 to find a someone to walk her pet dog, $15,000 of investment property repairs and $3,000 of car expenses.

a.     Calculate Nola's taxable income.

b.    Calculate the basic income tax liability on the taxable income.

2.    Since 2014, Andre has been travelling around the world. He is currently in Vietnam and has bought a house in Hanoi. He has also met a Vietnamese girl, Trang, and intends to marry her and settle in Vietnam. In 2017, Andre has been travelling back and forth between Vietnam and Australia, to move his furniture and personal belongings to Vietnam. He intends to leave his home in Australia empty or give it to his sister Lorene as a gift. Explain the following:

a.     Is Andre a resident of Australia?

3. Pancras Ltd finished tax year 2015-16 with trading stock at cost of $15 million. During 2016-17 sales totalled $150 million and purchases totalled $60 million. Closing stock at cost at the end of the period was $10 million, its replacement value was $20 million and market selling value $7 million. Calculate the company's assessable income alternatives for 2016-17.

4.    Mike works as a surgeon at the local hospital. In year 2010, he was diagnosed with Parkinson's disease. This causes his hands to tremble and shake, which prevents Mike from performing any more surgery.

In case of a disability and Mike cannot work or perform any surgeries, Mike will receive a monthly benefit of $5,000 for the period which he was partially or totally disabled. In 2015, Mike ceased work totally and he made a claim on his insurance policy of $300,000 for the period between 2010 to 2015 and he was paid the $300,000.

Explain the following:

a.     What was character of the of the claim?

b.     Is the claim assessable? Explain why/why not. 

c.     Would your answer be different if Mike had an accident and the $300,000 payment was solely for Mike's loss of use of his hands?

5. In 2010, Dene Ltd, a company dealing with the production of industrial steel, bought a parcel of land to use half the land to build a plant, and the other half of the land for storage facility. The cost of the land was $2 million.