1 - Specific Deduction and Capital Allowances (20 Marks) 1. Micah owns a cattle stud farm which was seriously affected by the Black Summer 2019/2020 bushfires, which destroyed all the existing timber fence posts on his farm. He now seeks advice about whether: a. he can claim a deduction of $200,000 for replacing the destroyed fences and replacing them with metal fence posts? (5 Marks) b. Would your answer to a. above differ if, instead of metal posts, Micah replaced the damaged posts with wood posts? (5 Marks) Your answers to (a) and (b) above must be supported by relevant references to legislation, case law and any tax rulings. 2. On 1 October 2023, Micah purchased a large printing machine for $25,000 to print high quality brochures advertising the services and facilities offered by the cattle stud farm he owns and which generates turnover in excess of $10 million annually. The effective life of the printer is 8 years. Required: For the current year ending 30 June 2024, calculate: i. the amount of deduction that could be claimed by Micah in respect of the printing machine; (5 Marks) ii. the tax consequences if Micah sells the printer for $20,000