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solution

On 10 January 2020 PHANTOM Pty Ltd acquired a disused building in Sydney to operate a printing supplies branch. Because of the need to install heavy printing equipment, PHANTOM Pty Ltd spent $50,000 in resurfacing and strengthening part of the floor. A few days later in order to comply with company branding, PHANTOM Pty Ltd also replaced the glass-top reception desk with an elegant wooden reception desk at a cost of $11,500.

REQUIRED

Part 1 Advise PHANTOM Pty Ltd on the deductibility of the floor resurfacing and strengthening (for the heavy printing equipment).

Part 2 Advise PHANTOM Pty Ltd on the deductibility of the reception desk.

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