Case Study: “Painters Delight” Mary Brown aged 55 retired from Cisco on the 1 August 2014. As part of her retirement she received two tickets to London valued at $4,500 from her employer in recognition of 10 years of service with the firm. As Mary had been interested in painting for many years she decided to focus her time in painting and exhibiting her paintings in local art shows in Melbourne. In the past Mary had sold only a few paintings due to her work demands. For the year ending 30.06.15 she sold paintings worth $25,000 (of which $12,500 occurred in June 2015). However during the year she was also asked to give guest lectures to local art shows in Melbourne. During the year she received $5,000 from such presentations. Because of her continued success Mary decided to open a local art and supplies shop in Kew called “Painters Delight”. It opened in June 2015. As a result she incurred the following costs in opening the shop: o Lease costs $5,000 for June and July 2015 o Furniture/Fit out costs $15,000 o Legal costs $450 o Advertising $350 o Electricity and Gas $475 o Art& Paint supplies $16,500 o She also incurred Car expenses (leased) $12,750 for the year In May Mary attended the Monet exhibition in Canberra to see a visiting art exhibition. The cost was $1,250. During the opening month Mary made sold 8 paintings worth $12,500. However she had not received payment for one painting worth $3,500 until 3 July 2015. Required Advise Mary as to (a) Whether any of the above proceeds from her painting activities are assessable income and (b) What deductions may be claimed for the year ending 30.06.15. Instructions/Submission details o This assignment is worth 20 marks. o Word limit: 1,200 words (10% tolerance) o Assignments must be submitted only electronically via Turnitin.