Referencing Styles : Harvard Hilary is a well-known mountain climber. The Daily Terror newspaper offers her $10,000 for her life story, if she will write it. Without the assistance of a ghost writer, she writes a story and assigns all her right, title and interest in the copyright for $10,000 to the Daily Terror. The story is published and she is paid. She has never written a story before. She also sells the manuscript to the Mitchell Library for $5,000 and several photographs that she took while mountain climbing for which she receives $2,000. Requirement: Discuss whether or not the three payments are income from personal exertion. Would your answer differ if she wrote the story for her own satisfaction and only decided to sell it later? Question 2 (5 marks) Your client is a parent who lent $40,000 to her son to provide a short-term housing loan. The agreement is that the son will repay $50,000 at the end of five years. Reconsider this question in light of the following facts. The loan was made to the son without any formal agreement and without any security provided for the sum lent. In addition, the client (the mother) has informed you that she told her son that he need not pay interest. However, the son repaid the full amount after two years and included in his payment an additional amount which was equal to 5% pa on the amount borrowed. Only one cheque was presented for the total amount. Requirement: Discuss the effect on the assessable income of the parent. Question 3 (10 Marks) Scott is an accountant who purchased a vacant block of land in Brisbane on 1 October 1980. On 1 September 1986, Scott built a house on the land. At the time, the land was valued at $90,000 and the cost of construction was $60,000. The property has been rented out since construction was completed. On 1 March of the current tax year, Scott sold the property at auction for $800,000. Requirement: 1) Based on the information above, determine Scott’s net capital gain or net capital loss for the year ended 30 June of the current tax year. 2) How would your answer to (a) differ if Scott sold the property to his daughter for $200,000? 3) How would your answer to (a) differ if the owner of the property was a company instead of an individuals Explain your answer with relevant case study and proper Taxation law sections and apply current rates. Question 4: (300 words should be separate page and no reference for this question) During 2013 Clara started working as a senior tax manager with an office supply retailing chain. During the initial job interview process it was made clear that this would be a role predominantly with income tax matters. · During February 2015 clara was told that her role would change to one that deals predominantly with Gst. However, her job title was to remain unchanged. When clara complained that this was not the job that she had applied for, she was told that she would receive $25000 compensation over 4 equal installments to compensate her for the change of position. · Since 2014 clara has also been running her own private business on weekends completing tax returns for members of public. How employer believed that this had the potential to cause clara to be mentally tired and perform her employee role in a suboptimal manner. As a result, clara and her employer agree for clara to be paid $ 15000 in exchange for her agreeing to cease her business for the next 5 years. Ignoring the capital Gains Tax, discuss whether: a) The receipt of $ 25000 constitute assessable income b) The receipt of $15000 constitutes ordinary income.