17/09/2019 Quiz 3
School of Banking & Finance
UNSW Business School
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My courses U… C… B… GENC3004-5193_01562 Quizzes (30%) Quiz 3
Started on Sunday, 21 April 2019, 11:00 PM
State Finished
Completed on Monday, 22 April 2019, 12:18 AM
Time taken 1 hour 17 mins
Grade 10 out of 10 (100%)
Question 1 Which of the following statements is most TRUE?
Correct
Mark 1 out of 1 Select one:
a. If you bought an asset that went up in value by $20,000 over 2 years in the country of Snowland, then the full
$20,000 should be included as assessable income.
b. Dividend income in Snowland is included as assessable income and is taxed according to the investors
marginal tax rates.
c. In Snowland, you can claim both principal and interest payments on an investment loan as an allowable
deduction if that loan was used to purchase an investment property.
d. The Australian government refunds any corporate tax paid by the company to the individual shareholder as a
tax rebate.
Correct
e. Interest earned on savings accounts is tax free in the country of Snowland.
The correct answer is 'The Australian government refunds any corporate tax paid by the company to the individual
shareholder as a tax rebate.' Interest on bank accounts in Snowland is assessable income. Only 50% of the gain in an
asset would be assessable in Snowland if held for more than a year. Only interest payments can be treated as an
allowable deduction in Snowland (not principal).
The correct answer is: The Australian government refunds any corporate tax paid by the company to the individual
shareholder as a tax rebate.
This study source was downloaded by 100000899606070 from CourseHero.com on 06-23-2025 10:00:49 GMT -05:00
https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=5179204&cmid=2106266 1/5
https://www.coursehero.com/file/107717091/Quiz-3pdf/
, 17/09/2019
Question 2
Quiz 3
Robert is earning $20,000 and is married to Sally who is earning $100,000. They have a $200,000 mortgage on their
Correct townhouse and own a $40,000 savings account held in joint names. Which of the following strategies is the easiest to
Mark 1 out of 1 implement in order to reduce their combined income tax in Australia?
Select one:
a. Negative gearing
b. None of the other answers are easy to implement.
c. Accelerated home loan repayments
d. Franking credits
e. Income splitting Correct
The easiest one to implement is to simply move the savings account into Robert's name rather than to put the account
in joint names. When the account is in joint names, the assessable income from the interest income is split between
both Robert and Sally. However, Sally has a higher taxable income. It is best to put the savings account in Robert's
name and to make sure he earns all the associated assessable income. Negative gearing may be effective but it is
more difficult to implement than simply changing the names on the savings account. Accelerated home loan
repayments doesn't actually help reduce income tax. Franking credits from shares may be effective but again,
changing the name of the savings account is the easiest option right now.
The correct answer is: Income splitting
Question 3 David lives in the country of Snowland. Calculate his assessable income given that:
Correct
he earns a part-time salary from one employer of $26,000 per year;
Mark 1 out of 1 he also does some casual work with a different employer earning $5,000 per year;
he has $14,000 in a savings account which will earn interest at the rate of 4% per year; and
he has work related expenses of $3,000 per year that are an allowable deduction.
Your answer should be calculated to the nearest dollar ($ 0dp). Do not include a dollar sign in your answer.
Answer: 31560
The numbers in this question are random and so I cannot give you the working for your specific question. However,
assessable income is any income that tax legislation in Snowland deems to be 'assessable'. This includes salary or
wage income, benefits provided by employers and investment income (such as interest). Allowable deductions are not
relevant for calculating assessable income since they are used to calculate taxable income (which is assessable
income less allowable deductions). In this case, David's part-time salary, income from casual work and interest on his
savings account should be added together to give assessable income. The work related expense should be ignored.
The correct answer is: 31560
Question 4 Lisa lives in the country of Snowland. Calculate her taxable income given that:
Correct
she has a part-time job earning $21,000 per year;
Mark 1 out of 1
she has a casual job earning $8,000 per year;
she has $16,000 in a 1 year term deposit that will earn interest at the rate of 4% per year; and
she has study expenses of $5,000 per year that are an allowable deduction.
Your answer should be calculated to the nearest dollar ($ 0dp). Do not include a dollar sign in your answer.
Answer: 24640
The numbers in this question are random and so I cannot give you the working for your specific question. However,
taxable income is assessable income less allowable deductions. Assessable income is any income that tax legislation
in Snowland deems to be 'assessable'. This includes salary or wage income, benefits provided by employers and
investment income (such as interest). In this case, David's part-time salary, income from casual work and interest on
his savings account should be added together to give assessable income. The study expenses should be then
deducted from assessable income to give taxable income.
This study source was downloaded by 100000899606070 from CourseHero.com on 06-23-2025 10:00:49 GMT -05:00
The correct answer is: 24640
https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=5179204&cmid=2106266 2/5
https://www.coursehero.com/file/107717091/Quiz-3pdf/
School of Banking & Finance
UNSW Business School
Site Home
Announcements
User Guides
My courses U… C… B… GENC3004-5193_01562 Quizzes (30%) Quiz 3
Started on Sunday, 21 April 2019, 11:00 PM
State Finished
Completed on Monday, 22 April 2019, 12:18 AM
Time taken 1 hour 17 mins
Grade 10 out of 10 (100%)
Question 1 Which of the following statements is most TRUE?
Correct
Mark 1 out of 1 Select one:
a. If you bought an asset that went up in value by $20,000 over 2 years in the country of Snowland, then the full
$20,000 should be included as assessable income.
b. Dividend income in Snowland is included as assessable income and is taxed according to the investors
marginal tax rates.
c. In Snowland, you can claim both principal and interest payments on an investment loan as an allowable
deduction if that loan was used to purchase an investment property.
d. The Australian government refunds any corporate tax paid by the company to the individual shareholder as a
tax rebate.
Correct
e. Interest earned on savings accounts is tax free in the country of Snowland.
The correct answer is 'The Australian government refunds any corporate tax paid by the company to the individual
shareholder as a tax rebate.' Interest on bank accounts in Snowland is assessable income. Only 50% of the gain in an
asset would be assessable in Snowland if held for more than a year. Only interest payments can be treated as an
allowable deduction in Snowland (not principal).
The correct answer is: The Australian government refunds any corporate tax paid by the company to the individual
shareholder as a tax rebate.
This study source was downloaded by 100000899606070 from CourseHero.com on 06-23-2025 10:00:49 GMT -05:00
https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=5179204&cmid=2106266 1/5
https://www.coursehero.com/file/107717091/Quiz-3pdf/
, 17/09/2019
Question 2
Quiz 3
Robert is earning $20,000 and is married to Sally who is earning $100,000. They have a $200,000 mortgage on their
Correct townhouse and own a $40,000 savings account held in joint names. Which of the following strategies is the easiest to
Mark 1 out of 1 implement in order to reduce their combined income tax in Australia?
Select one:
a. Negative gearing
b. None of the other answers are easy to implement.
c. Accelerated home loan repayments
d. Franking credits
e. Income splitting Correct
The easiest one to implement is to simply move the savings account into Robert's name rather than to put the account
in joint names. When the account is in joint names, the assessable income from the interest income is split between
both Robert and Sally. However, Sally has a higher taxable income. It is best to put the savings account in Robert's
name and to make sure he earns all the associated assessable income. Negative gearing may be effective but it is
more difficult to implement than simply changing the names on the savings account. Accelerated home loan
repayments doesn't actually help reduce income tax. Franking credits from shares may be effective but again,
changing the name of the savings account is the easiest option right now.
The correct answer is: Income splitting
Question 3 David lives in the country of Snowland. Calculate his assessable income given that:
Correct
he earns a part-time salary from one employer of $26,000 per year;
Mark 1 out of 1 he also does some casual work with a different employer earning $5,000 per year;
he has $14,000 in a savings account which will earn interest at the rate of 4% per year; and
he has work related expenses of $3,000 per year that are an allowable deduction.
Your answer should be calculated to the nearest dollar ($ 0dp). Do not include a dollar sign in your answer.
Answer: 31560
The numbers in this question are random and so I cannot give you the working for your specific question. However,
assessable income is any income that tax legislation in Snowland deems to be 'assessable'. This includes salary or
wage income, benefits provided by employers and investment income (such as interest). Allowable deductions are not
relevant for calculating assessable income since they are used to calculate taxable income (which is assessable
income less allowable deductions). In this case, David's part-time salary, income from casual work and interest on his
savings account should be added together to give assessable income. The work related expense should be ignored.
The correct answer is: 31560
Question 4 Lisa lives in the country of Snowland. Calculate her taxable income given that:
Correct
she has a part-time job earning $21,000 per year;
Mark 1 out of 1
she has a casual job earning $8,000 per year;
she has $16,000 in a 1 year term deposit that will earn interest at the rate of 4% per year; and
she has study expenses of $5,000 per year that are an allowable deduction.
Your answer should be calculated to the nearest dollar ($ 0dp). Do not include a dollar sign in your answer.
Answer: 24640
The numbers in this question are random and so I cannot give you the working for your specific question. However,
taxable income is assessable income less allowable deductions. Assessable income is any income that tax legislation
in Snowland deems to be 'assessable'. This includes salary or wage income, benefits provided by employers and
investment income (such as interest). In this case, David's part-time salary, income from casual work and interest on
his savings account should be added together to give assessable income. The study expenses should be then
deducted from assessable income to give taxable income.
This study source was downloaded by 100000899606070 from CourseHero.com on 06-23-2025 10:00:49 GMT -05:00
The correct answer is: 24640
https://moodle.telt.unsw.edu.au/mod/quiz/review.php?attempt=5179204&cmid=2106266 2/5
https://www.coursehero.com/file/107717091/Quiz-3pdf/
