QUESTION IO.17    (Application of decline in value methods)

George Benson is a 45-year-old resident taxpayer who has conducted business as an IT Programmer for 8 years and has annual turnover below

$10 million. He has instructed his accountant to apply all available small business concessions.

 

During    the    2021/22    income    year,    George    recorded     the following transactions relating to his business:

1/07/21      Purchase of new IT equipment(effective life 6 years) $ 6,000

 

 

1/07/21      Sale of a photocopier (original cost $8,500)

 

1/10/21      Purchase of office furniture                                                        $ 17200

(effective life 10 years, used 75% for business)

 

1/01/22      Purchase of new office desk (effective life 5 years)                  900

 

The photocopier had been previously placed in the general small business

pool.

 

The balance of George's general small business pool as at 3O June 2021 is

$54,OOO.

 

Calculate the maximum deduction available for decline in value of the

new equipment.

 

Calculate the closing balances of the general small business pool.

Answer rating: 100% (QA)

To calculate the maximum deduction available for decline in value of the new equipment and the closi... View the full answer