Bianca runs a small manufacturing business as a sole trader (it has an aggregated annual turnover of approximately $5 million). Separate from this, she also owns a residential investment property (which is not considered as being part of her business). She makes the following acquisitions: -On 10 January 2022 she acquires a leather lounge for her investment property (effective life of 10 years). This cost her $6,000. -On 15 February 2022 she acquires a new piece of machinery for her business (effective life of 15 years). This cost her $40,000.

Required: 

Showing workings and citations, calculate Bianca's deductions regarding the two items for the 2021-22 tax year. Where Bianca has a choice of methods in calculating her deductions, use the method that will give her the highest deductions for the tax year (4 marks). 

Answer rating: 100% (QA)

On the 10th of January in the year 2022 she purchases a leather couch for her rental house eff... View the full answer