(a) Meme is a small business taxpayer. At 1 July 2019 the balance of the taxpayer's...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(a) Meme is a small business taxpayer. At 1 July 2019 the balance of the taxpayer's Small Business Depreciation pool was $47,555. During the year ended 30 June 2020, Meme entered into the following transactions: Date Transaction Amount excluding GST $ Effective Life (years) 1 Aug 2019 1 Dec 2019 Purchased car 58,000 6. Purchased cash register 980 1 Jan 2020 Purchased machinery 35,000 15 Jan 2020 Purchased Office Furniture 27,500 8 All assets, including the car, are used 100% for business purposes. In May 2020, Meme sold a car used 100% for business for $11,500. The car cost $30,000 when it was purchased on 1 July 2016. Required (i) Calculate the maximum income tax deduction available to Meme for the year ended 30 June 2020 in relation of the above depreciating assets. (5 marks) (ii) Calculate the closing balance of Meme's Small Business Depreciation Pool at 30 June 2020. (3 marks) 2010 (a) Meme is a small business taxpayer. At 1 July 2019 the balance of the taxpayer's Small Business Depreciation pool was $47,555. During the year ended 30 June 2020, Meme entered into the following transactions: Date Transaction Amount excluding GST $ Effective Life (years) 1 Aug 2019 1 Dec 2019 Purchased car 58,000 6. Purchased cash register 980 1 Jan 2020 Purchased machinery 35,000 15 Jan 2020 Purchased Office Furniture 27,500 8 All assets, including the car, are used 100% for business purposes. In May 2020, Meme sold a car used 100% for business for $11,500. The car cost $30,000 when it was purchased on 1 July 2016. Required (i) Calculate the maximum income tax deduction available to Meme for the year ended 30 June 2020 in relation of the above depreciating assets. (5 marks) (ii) Calculate the closing balance of Meme's Small Business Depreciation Pool at 30 June 2020. (3 marks) 2010
Expert Answer:
Answer rating: 100% (QA)
Answer i Total Maximum Income Tax Deduction 151480 ii Total Closing balance 103925 Explanation i ... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
During the year ended 30 June 2020, Marias restaurant kitchen caught fire. As a result of the fire she received the following amounts: Insurance recovery to replace lost cool room $12,000 Insurance...
-
During its financial year ended 30 June 20X7 Beavers, an engineering company, has worked on several contracts. Information relating to one of them is given below: Contract X201 Date commenced...
-
During the year ended 30 June 2016, Beautiful Bottles Pty Ltd incurred the following costs in connection with its production activities. Raw materials purchases Factory electricity Indirect labour...
-
Bank Teller Staffing Plan As the teller supervisor at Montana Federal Credit Union you are responsible for developing a staffing plan for tellers that meets customer needs, satisfies the union...
-
An archer shoots an arrow into a square target 6 feet on a side whose center we call the origin. The outcome of this random experiment is the point in the target hit by the arrow. The archer scores...
-
Island Novelties, Inc., of Palau makes two products, Hawaiian Fantasy and Tahitian Joy. Present revenue, cost, and sales data for the two products follow: Fixed expenses total $475,800 per year. The...
-
Refer to the data for Cycle Guys in E5-31B. Requirements 1. Compute the cost of goods sold under FIFO. 2. Compute the cost of goods sold under LIFO. 3. Which method results in a higher cost of goods...
-
The Questron Company manufactures telecommunications equipment at its plant in Scranton, Pennsylvania. The company has marketing divisions throughout the world. A Questron marketing division in...
-
Tyson Inc. is considering a project of replacing its old press machine with a new model. Due to the availability of the new model, the market value of the old model has just dropped from $100,000 a...
-
In 2016 the Harris poll estimated that 3.3% of American adults are vegetarian. A nutritionist thinks this rate has increased. The nutritionist samples 150 American adults and finds that 11 are...
-
With the opening of UCWs new downtown Vancouver House, you are to provide an investment recommendation on a 2,000 square foot open space on the retail floor of the campus. The use of space will be at...
-
Climate Change Adaptation and Disaster Risk Reduction are often labeled as different and in some instances synonymous. i. Discuss the difference and the linkages between Climate Change Adaptation and...
-
A new conservative coalition government is elected and a key plank of its electoral policy is to 'give back to our primary producers'. The first piece of legislation passed through the new Parliament...
-
Something that I see often when editing essays are issues with Point of View (POV). Oftentimes, this is just something that students are not aware of or may have just forgotten (I get it). Let's talk...
-
Often leadership occurs within a context where one individual influences a group of others to accomplish goals. What best describes this component of leadership?
-
1. Consider the following Simplex tableau. Z X X2 X3 1 60 0 0 4 0 0 2 1 0 4 0 X4 X5 X6 X7 40 0 30 20 0 1 1 2 1 0 00 4 2 0 2 6 1 0 0 0 1 a. What are the basic variables? b. What are the nonbasic...
-
The general ledger of Pop's Fireworks includes the following account balances in 2024: Accounts Cash Debit Credit $23,200 Accounts Receivable 46,500 Allowance for Uncollectible Accounts $4,200...
-
Solve each problem. Find the coordinates of the points of intersection of the line y = 2 and the circle with center at (4, 5) and radius 4.
-
In your capacity as chief assistant to the financial controller, your managing director has asked you to explain to him the differences between tax planning, tax avoidance and tax evasion. He has...
-
On 1 January 20X7 Parent Ltd acquired 75% of the ordinary shares in Daughter Ltd for £9,000 cash. The fair value of the net assets in Daughter Ltd was their book value. Assume in each case that...
-
C plc wants to reward its directors for their service to the company and has designed a bonus package with two different elements as follows. The directors are informed of the scheme and granted any...
-
What is the difference between a primary beneficiary relationship and a foreseen party relationship?
-
What is the difference between a privity relationship and a primary beneficiary relationship?
-
What is the difference between a foreseen party relationship and a foreseeable party relationship?
Study smarter with the SolutionInn App