[Recommended] REVISION QUESTIONS

SOLUTION AT Academic Writers Bay REVISION QUESTIONSBelow are some revision questions for practice only. Please use the Tax rates &Formula Sheet provided under Modules. When attempting the questions, you areexpected to elaborate wherever required, to display the extent of yourunderstanding of the questions or issues. Short and telegraphic answers with bulletpoints should be avoided. We look for well-constructed sentences, clear expression,and justification of your statements. The solutions provided for revision questionsmay be abridged and provide guidance only. Please show how you have arrivedat your answers or conclusions.Part 1: Case studySally and Peter, aged 28 and 27 respectively, seek your professional adviceconcerning their financial affairs. Sally is a primary school teacher, and Peter is insales manager with an Australian food (distribution) services. The couple has twochildren aged 4 and 1.The couple’s plans are as follows:• The couple intends to retire thirty years from now. (Does this means anything:The eligibility are for old age pension???).• A years ago, the couple has purchased the house on a mortgage using supportfrom their parents. The duration of the loan payment period is 30 years. The pricerise in recent years allows them to estimate good valuation for this house at the timeof their retirement.At the time of retirement, the couple plan to downsize and move to a small houseclose to the beach. The part proceeds of this downsizing to be part of their retirementfund.Assume the couple’s assets and liabilities are as follows: Assets $ House 600,000 Cars 48,000 Managed funds – fixed interest (Peter) 50,000 Cash at bank 500 Superannuation – Sally (fixed interest) 110,000 RMIT Classification: Trusted Superannuation – Peter (fixed interest) 150,000 NAB shares (Sally) 15,000 Liabilities Mortgage on home 480,000 Credit card 15,000 The couple’s income and expenses for the 2019/20 year of income are as follows: Income Salary Sally 50,000 Salary Peter 100,000 Distribution from managed funds (Peter) 3,500 Franked dividends from NAB (Sally) 1,400($600 Imputation credit) Expenses Living expenses 40,000 Work-related expenses for Sally:Travel between work and home 1,500 Union fees (Sally) 600 Voluntary superannuation contributions (Nonconcessional) (peter) 3,000 Peter (Donation) 1,200 Required1. Calculate the tax payable by Sally and Peter individually for the 2020/2021income tax year (use the tax rates as provided in Tax Rates & Formula Sheetavailable under Modules in Canvas). Show all your workings.2. Discuss in relation to the couple likely personal insurance requirements.3. Sally and Peter are looking at having a Will. Explain to the couple what a Willand the purpose is of having it.4. Discuss some of the problem areas that you see with their superannuationportfolio, keeping in view that is approximately more than 15 years away from theirplanned retirement. Remember the couple wants to follow an aggressive investmentapproach for nest 10 years of their working years. Also provide somerecommendations to the couple.Part 2:Question 1Describe the importance of analysing the risk profile of a person when preparing aFinancial Plan for them.Question 2How is a financial planner able to determine the exact financial objectives of aclient? List 5 financial objectives that a couple in their mid-40’s is likely to have.Question 3(a) Your 5-year-old son inherited $20,000 for his university education from anAunty who passed away. After seeking your advice, his Aunty invested the moneyin a bond fund paying 3.5% p.a. semi-annually for 15 years. All interest isreinvested. How much money will your son have when he turns 20?(b) Your brother is saving to go on a world trip in two years. His monthlysurplus, after his tax and expenditure, is $500, which he invests into a bankaccount regularly. He has also been able to accumulate $4,000 in savings from hisend of month salary and is thinking to invest this amount plus the regular monthlysurplus of $500 into the bank account. The bank gives him an interest rate of 6%p.a. and the interest is compounded monthly. How much money will your brotherhave at the end of the two years?Question 4(a) Jason aged 47, is a business analyst who earns a salary of $42,000. He isconcerned about whether his superannuation fund will be large enough to supporthis retirement when he finishes work.Required (i) Calculate the minimum amount of contributions Jason’s employer must make to his superannuation fund per annum. (ii) Outline two strategies that Jason could adopt to increase his superannuation balance in retirement.Question 5Deborah, single and aged 67 is seeking advice on whether she is eligible for anAged Pension.Following is the list of her assets and liabilities: Assets $ Residence 520,000 Contents 40,000 Savings account 10,000 Term deposit 30,000 Managed fund 50,000 Investment property 160,000 Income $ Interest from savings account 100 Interest from term deposit 1,200 Income distribution from managed fund 4,500 Rental income from Investment property 7,500Required(a)Calculate the amount of age pension payable to Deborah under the asset test.(b)Calculate how much income Deborah will be deemed to have earned and thepension she will receive under the income test. How much age pension is sheentitled to receive after considering the calculations from both asset and incometest?Question 6Kath incurred the following capital transactions for the year ended 30 June,2020:Sold a unit for $150,000 on 1 January 2020 that she had purchased for $180,000on 20 September 2007.Sold some shares for $85,000 on 24 February 2020 that she had acquired for$45,000 on 25 June 1997.Calculate the net capital gain forming part of Kath’s assessable income for theyear ended 30 June 2020. CLICK HERE TO GET A PROFESSIONAL WRITER TO WORK ON THIS PAPER AND OTHER SIMILAR PAPERS CLICK THE BUTTON TO MAKE YOUR ORDER