A manufacturer owned a depreciating asset (Machine 1) which was acquired or november 2018 at a cost

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Question:

A manufacturer owned a depreciating asset (Machine 1) which was acquired or november 2018 at a cost of $60,000 and which, on 30 june 2020, had an adjustment for income purposes of $40,000. It was used 100% for business purposes On 1 July 2020, machine 1 was destroyed by fire and the manufacturer received insurence under a replacement policy) of $78,000 The manufacturer purchased a new machine $80,000 on 1 August 2020. This new machine (Machine 2) has an effective life of 8 years and is used 100%

Required a. Calculate any applicable balancing adjustment has on assessable income.

b. What will be the taxpayer's decline in Machine 2 for the year ended 30 june 2017 You must refer to the relevant section numbers in the legislation.