Students are reminded that there are two assignments in LEGL300. This is the first assignment, being a group assignment of 30 marks. Each group must have either 2 or 3 people. Choose your team members carefully. Students must notify the lecturer in a timely manner and provide substantiating documentation of any problems in relation to group work.
All assignments must be typed in Arial, size 11, 1½ spacing, justified (align to both left and right), have the standard cover sheet and be signed by the student(s) stating that the work is original. While referencing sources used for this assignment, you must follow the Australian Guide to Legal Citation (AGLC) (the footnote system).
The maximum length for this assignment is 700 words. Students must submit this assignment via Turnitin no later than Friday, 08/10/2018 (week 10) at 11:59pm. Penalties will be imposed for late submission without prior permission.
Question 2 (10 marks):
John is a self-employed architect. He purchased a house in the outer suburbs of Melbourne in July 2017 at a total cost of $1,250,000. He purchased the property because it had a room which he could modify and use to conduct his architectural business. The room made up 15% of the house area. He borrowed a large sum of money from the bank to help finance the purchase. He pays interest of $34,000 per annum on this loan to the bank. He specifically purchased the house because the room he uses for his architectural business faces the street. After purchasing the house, he had a builder install a new door, which enabled clients to enter the room without going through the main living area. Unfortunately, the local council fined him $1,000 in January 2018 for not obtaining a building permit before he installed the door. After moving into the house he replaced the old carpet in the room with better quality carpets at a cost of $6,000. He also furnished the room with an antique desk which cost $7,250, which he uses only for his work. He claims that the room is the sole base for his architectural business. He is also required to travel to building sites and visit clients to discuss designs and drawings. He uses his own motor vehicle a Honda HRV to carry this out. Based on his log book he uses the car 72% of the time for work purposes. He uses the rest of the house for private purposes. In May 2018 he sold the house for $1,855,000. At the same time, he also sold the antique desk for $3,850.