Legt2751
THE UNIVERSITY OF NEW SOUTH WALES
Australian School of Business
School of Business Law and Taxation LEGT2751 BUSINESS TAXATION
SEMESTER TWO - 2009 FINAL EXAMINATION
1.
2.
Time Allowed: 2 hours
Reading Time: 10 minutes
3. 4. 5.
6.
This examination paper has: 5 pages Total Number of Questions: 3 Total Marks Available: 40
Answer TWO Questions
7.
8. 9.
All Questions are of Equal Value
All answers must be Written in Ink This paper MAY be retained by the candidate
.,
•
SPECIAL INSTRUCTIONS
10. 11.
Each question must be answered in a separate booklet Answers must be clearly written. Answers that cannot be read will not be marked Candidates are permitted to bring electronic calculators into the examination room. UNSW approved There are no restrictions on materials you can bring into the examination room. It is an open book examination
...Ip/ease see over
12. 13.
11111/111111/1//1//111/1/1/1/1111/1//1111//111//1/111/1//////1
>014448742
QUESTION ONE
(20 Marks)
Martin purchases a derelict buifding on 1 January Yl in Surry Hills for $500,000. To finance the purchase Martin borrows $500,000 at 10% from Big Bank Ltd. Prior to Martin's purchase the building had been leased by a charitable organisation to a women's refuge at a nominal rental of $1 00 per week. At the time of Martin's purchase the lease to the women's refuge has a year to run. He buys the building subject to that lease. Once Martin purchases the building he shouts, "I have a dream!" Martin's dream is that one day the building will be a multiculturaJ cafe, the JlWorld Community Cafe", where all will be able to come and eat Its logo will be a globe of the world inside a coffee cup. On 14 Februal)' Yl Martin applies to the local council for permission to redevelop the building as a cafe. On 14 February Y1 Martin also gives the women's refuge one month's notice to vacate the premises. The women's refuge refuses to vacate and Martin incurs $10,000 in legal fees
Australian School of Business
School of Business Law and Taxation LEGT2751 BUSINESS TAXATION
SEMESTER TWO - 2009 FINAL EXAMINATION
1.
2.
Time Allowed: 2 hours
Reading Time: 10 minutes
3. 4. 5.
6.
This examination paper has: 5 pages Total Number of Questions: 3 Total Marks Available: 40
Answer TWO Questions
7.
8. 9.
All Questions are of Equal Value
All answers must be Written in Ink This paper MAY be retained by the candidate
.,
•
SPECIAL INSTRUCTIONS
10. 11.
Each question must be answered in a separate booklet Answers must be clearly written. Answers that cannot be read will not be marked Candidates are permitted to bring electronic calculators into the examination room. UNSW approved There are no restrictions on materials you can bring into the examination room. It is an open book examination
...Ip/ease see over
12. 13.
11111/111111/1//1//111/1/1/1/1111/1//1111//111//1/111/1//////1
>014448742
QUESTION ONE
(20 Marks)
Martin purchases a derelict buifding on 1 January Yl in Surry Hills for $500,000. To finance the purchase Martin borrows $500,000 at 10% from Big Bank Ltd. Prior to Martin's purchase the building had been leased by a charitable organisation to a women's refuge at a nominal rental of $1 00 per week. At the time of Martin's purchase the lease to the women's refuge has a year to run. He buys the building subject to that lease. Once Martin purchases the building he shouts, "I have a dream!" Martin's dream is that one day the building will be a multiculturaJ cafe, the JlWorld Community Cafe", where all will be able to come and eat Its logo will be a globe of the world inside a coffee cup. On 14 Februal)' Yl Martin applies to the local council for permission to redevelop the building as a cafe. On 14 February Y1 Martin also gives the women's refuge one month's notice to vacate the premises. The women's refuge refuses to vacate and Martin incurs $10,000 in legal fees