A taxpayer purchased a new tractor for $60,000 for his farming business on 12 May 2020. He

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A taxpayer purchased a new tractor for $60,000 for his farming business on 12 May 2020.

He paid $40,000 cash only for the tractor because he traded in an old tractor and was allowed $20,000 against the price of the new tractor.

He expects that the new tractor will be useful for eight years and he wishes to depreciate the tractor using the diminishing value method.

Assuming that the taxpayer is not using the Small Business Entity (SBE) method of depreciation what amount can he claim as a deduction (to the nearest $) for the year ended 30 June 2021?

Related Book For answer-question

Advanced Accounting

ISBN: 978-0538480284

11th edition

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

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Posted Date: May 04, 2023 05:03 AM

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A taxpayer purchased a new tractor for $60,000 for his farming business on 12 May 2020. He

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