Q6 and Q7 are two individual questions with no relation to each other. answer them separately.
show all workings, formulas and related law regulations. detailed explanation is required.
Q6. Mike: Incurred $2,000 in feasibility studies in relation to whether there is a market for domestic windmills. He intends to sell these over Ebay over the coming months.
Q7. Lacey: She left Australia on 1 July 2014 to set up Break Fast’s New York office. She does not intend to return to Australia for five years. She is single and has no family ties. Her expected income is salary from Break Fast and interest income from a US bank account. The assets that she owns include her home in Sydney, stamp collections, car and shares in a listed company.
Explain the income tax implications of the above transactions for each of the employee involved.