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QUESTION 4 Following on from Questions 2 and 3, Sarah felt extremely annoyed about the library fine and decided to talk to Martha about it. She told...


QUESTION 4 Following on from Questions 2 and 3, Sarah felt extremely annoyed about the library fine and decided to talk to Martha about it. She told Martha that she thought that Martha should reimburse her for the cost of the library fine, since it was Martha who had lost the book. Martha replied that it was Sarah's job as her personal assistant to make sure Martha didn't lose any books, and so it was only right that Sarah should bear the cost. They argued for a long time. After the argument, Martha rang her lawyer and the lawyer advised her that she should reimburse Sarah forthe library fine. The next day, Martha reimbursed Sarah $110. How does the reimbursement impact upon Sarah's ability to claim a deduction for the fine payment?
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This question was created from Tutorial 7 _Week 8_ https://www.coursehero.com/file/8285960/Tutorial-7-Week-8-/?focusQaId=10177201

 


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